Reabold Resources PLC Update on UK oil and gas assets (0185C)
January 16 2018 - 5:16AM
UK Regulatory
TIDMRBD
RNS Number : 0185C
Reabold Resources PLC
16 January 2018
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014
("MAR").
REABOLD RESOURCES PLC
"Reabold" or the "Company"
Update on UK Oil and Gas Assets
Reabold Resources Plc (LSE AIM:RBD) is pleased to note today's
announcement by United Oil and Gas ("UOG" or "United") that it has
farmed into three licences operated by Corallian Energy Limited
("Corallian" or "Corallian Energy"), including P1918 which includes
the Colter prospect. As set out in Reabold's announcement of 1
November 2017, Reabold has an agreement in place to acquire a 35.4%
stake in Corallian Energy.
UOG will acquire a 10% interest in the licences by way of paying
13.33% of the costs associated with the Colter well, planned for Q2
2018 ("Initial Farmed Interest"). In addition, an option has been
granted, which expires at the end of March, under which United can
exercise a right to purchase an additional 10% interest in these
licences ("Additional Farmed Interest"), on the same terms as the
Initial Farmed Interest.
This follows the announcement by Upland Resources Limited
("Upland") on 30 November2017, that it had signed a farm-in
agreement with Corallian for a 40% working interest in UK Seaward
Production Licence P2235 (UKCS Block 11/24b) (the "P2235 Farm-in
Agreement") containing the Wick Prospect. Upland will pay 53.33% of
the estimated cost of the first well on the Wick prospect to earn
its 40% interest.
Stephen Williams and Sachin Oza, Co-CEOs of Reabold, commented
on the UOG announcement, "We are delighted that since our
investment into Corallian Energy less than three months ago, we
have seen two subsequent transactions on Corallian's assets that
provide both industry validation as to the quality of the assets,
and positive valuation markers relative to our investment
price".
The Corallian Investment was the first to be completed in line
with Reabold's strategy to identify strategic oil & gas
opportunities with the potential to create significant shareholder
value, and was followed by an investment into Danube Petroleum
announced on 4 December 2017. Reabold management continues to
assess a number of additional high quality opportunities.
Highlights - Corallian's Colter Project:
-- Colter is offshore, adjacent to the Wytch Farm oil field,
which has produced in excess of 450 million barrels of oil;
-- A 1986 discovery well, drilled by BP, on Colter recovered
41.9 API oil on test from a 10.5m oil column;
-- Since the 1980's seismic technology has advanced
significantly such that Corallian has used modern techniques to
merge and reprocess two offshore 3D seismic datasets which have
enabled the identification of over 100m of mapped vertical relief
up-dip of the discovery well;
-- An appraisal well is planned to be drilled on Colter by
Corallian (Operator) in the first half of 2018;
-- Corallian estimates gross mean prospective resources of 30
million barrels of recoverable oil for the Colter prospect; and
-- Corallian financial modelling based on the above prospective
resources forecasts a gross NPV (10) in the success case of GBP255
million.
Glossary
API - American Petroleum Institute
NPV - net present value at discount rate
Prospective Resource- those quantities of petroleum which are
estimated, on a given date, to be potentially recoverable from
undiscovered accumulations.
For further information please contact:
Reabold Resources plc
Stephen Williams c/o Camarco
Sachin Oza +44 (0) 20 3757 4980
Beaumont Cornish Limited
Roland Cornish/ James Biddle/Felicity Geidt +44 (0) 20 7628
3396
Camarco
Billy Clegg
James Crothers
Oliver Head +44 (0) 20 3757 4980
Whitman Howard
Limited
- Joint Broker
Nick Lovering
Grant Barker +44 (0) 20 7659 1234
Turner Pope Investments
(TPI) Ltd - Joint
Broker
Andy Thacker +44 (0) 20 3621 4120
This information is provided by RNS
The company news service from the London Stock Exchange
END
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