Why can’t I buy Reabold shares through some broker accounts?
We believe that some brokers, including Halifax and Lloyds, have incorrectly identified Reabold as a PRIIP (Packaged Retail and Insurance Based Investment Product).
We have subsequently contacted the FCA in attempt to get clarification that Reabold is not a PRIIP. The FCA is reviewing the unintended consequences of PRIIP legislation and we are continuing to liaise with the FCA to resolve this issue.
Where is Gaelic Incorporated?
Gaelic Resources is incorporated in the Isle of Man.
Is Colter fully funded?
Yes. Reabold’s initial investment of £1.5m resulted in the well being fully funded for drilling at a planned 40% Corallian interest. Following the Corallian fundraise, Colter is now fully funded at the higher working interest level of 50%.
When is Colter being drilled?
Colter is being drilled in Q1 2019.
When is Parta being drilled?
The first well of a two-well appraisal campaign at Parta is scheduled for Q1 2019.
Have the necessary environmental regulations been passed for Colter?
The UK process is based on a staged passing of various regulatory requirements. Based on these expected timelines, the operator anticipates Colter is on track for drilling in Q1 2019.
The drilling of Colter is an offshore activity and is therefore subject to regulations imposed on it by the Oil and Gas Authority. The regulatory process is very different from that required for an onshore well.
What effect do changing oil and gas prices have on Reabold?
Reabold is an oil and gas investing company with oil production assets. This means that rising oil and gas prices have positive, yet subtle effects on the Company and its growth.
Firstly, as a producer, Reabold directly benefits from rising global oil prices through the sale of oil from its Californian assets which are priced in Brent Crude. Similarly, the value of de-risked resources and reserves which Reabold has proved through drilling, track oil and gas prices.
As an investing company, however, the effect of oil and gas prices changing has a more subtle effect.
As defined by its strategy, Reabold focuses on projects which the industry does not value correctly. This valuation anomaly exists primarily as a result of the oil and gas industry’s focus on increasing reserves and, ultimately production. This has meant that production opportunities, which are contingent on oil and gas prices, have been valued highly during the oil downturn.
With the industry’s focus on production acquisition, appraisal or low-risk exploration opportunities have been less highly valued and are not contingent on prevailing oil and gas prices. The low valuations of these opportunities have provided an opportunity for investors such as Reabold to provide capital and to prove reserves through low cost, near-term drilling. Once de-risked through successful drilling, these assets attract much higher valuations and become more interlinked to oil and gas prices.
Find out more about Reabold’s strategy here: https://reabold.com/about-us/strategy/
When capital is available to the Company to invest, how quickly can that be deployed into another project?
In the case of capital raised through capital markets, quick deployment is a key focus for the Company. However, unlike many companies, Reabold does not raise capital to fund a specific, defined project or activity which it already owns but instead the Company markets several potential investment opportunities that have been matured before entering a roadshow in order to give a flavour of the opportunities available to the Company.
Will Reabold participate in any additional projects in the near future?
We continue to believe that this is a fantastic time to deploy capital into pre-cash flow upstream oil & gas projects, as costs remain low and opportunities abundant. We are constantly assessing a number of projects and remain in a strong position to execute on further transactions.
How does Reabold plan to monetise its investments?
Returning capital to shareholders is integral to Reabold’s investment strategy. Once value is created by proving up reserves at one of Reabold’s assets, there are various potential ways for the Company to relay this value back to shareholders, for example by selling Reabold’s stake in the asset to another E&P company or investor, spinning off the asset into an independent Company through an IPO process or putting the asset into production. How Reabold eventually monetises each investment is dependent on many factors including market conditions and the extent of any drilling success.