Reabold Resources PLC Completion of Investment in Rathlin Energy (1407J)
December 03 2018 - 1:00AM
UK Regulatory
TIDMRBD
RNS Number : 1407J
Reabold Resources PLC
03 December 2018
3 December 2018
Reabold Resources Plc
("Reabold" or "the Company")
Completion of Investment in Rathlin Energy (UK) Ltd
Reabold, the investor in pre-cash flow upstream oil and gas
projects, further to its announcement of 5 November 2018, is
pleased to announce the completion of its 37.08 per cent.
investment in Rathlin Energy (UK) Ltd ("Rathlin").
Completion of the deal was conditional on, inter alia, Connaught
Oil & Gas Limited ("Connaught") agreeing to settle a liability
of GBP33.8 million owed to it by Rathlin and the finalisation of a
farm out, by Rathlin, of Licence PEDL183 (onshore UK) to Union Jack
Oil plc ("Union Jack") and Humber Oil & Gas Ltd ("Humber") (the
"Farm Out"), resulting in Rathlin retaining a 66.67 per cent.
equity interest in Licence PEDL183. These conditions have now been
satisfied.
Licence PEDL 183 contains the significant West Newton A-1 gas
discovery, with an appraisal well planned for H1 2019. The well
will test two targets; the first target is the Kirkham Abbey
Formation gas discovery which has an estimated 72 per cent chance
of success and an NPV of $247m* and the second target is a deeper
Cadeby Formation reef flank oil prospect, considered to have an NPV
of $850m and an estimated 24 per cent. chance of success*.
In line with Reabold's investment strategy, West Newton will
bring near-term operational activity and, in a success case, offer
a fast pathway to monetisation through its proximity to existing
gas pipelines and infrastructure.
Stephen Williams, Co-Chief Executive Officer of Reabold
Resource, is to be appointed to the Board of Rathlin. Reabold
retains the right to appoint a director to the Rathlin board whilst
continuing to hold an equity interest of more than 15 per cent. in
the company.
In 2017, Deloitte prepared a CPR incorporating both the data
from the West Newton discovery well and subsequently acquired 3D
seismic data over the field. The Deloitte CPR assigns Contingent
Resource to the Kirkham Abbey gas formation and is the source of
management volumetric assessments.
For the year ended 31 December 2017, Rathlin recorded a loss
after tax of GBP1.3 million and reported net liabilities of GBP30
million.
*Connaught Management estimate (Note: This estimate is based on
the economic evaluations and most recent price forecasts provided
by Deloitte LLP for the CPR, updated by Connaught)
Stephen Williams, Co-CEO, commented:
"Sachin and I are delighted to have successfully completed our
investment in Rathlin. We view this as a highly opportune moment to
invest in this premier UK onshore opportunity."
"With a dual-target appraisal well planned to begin in H1 2019,
we look forward to working closely with Rathlin and updating
shareholders as further operational progress is completed over the
coming months."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
ENDS
For further information please contact:
Reabold Resources plc c/o Camarco
Stephen Williams +44 (0) 20 3757 4980
Sachin Oza
Strand Hanson Limited (Nominated Tel. +44 (0)20 7409 3494
and Financial Advisor)
Rory Murphy / James Spinney /
James Dance
Camarco
James Crothers
Ollie Head
Billy Clegg +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
Notes to Editors
Reabold Resources plc is an investing company investing in the
exploration and production ("E&P") sector. The Company's
investing policy is to acquire direct and indirect interests in
exploration and producing projects and assets in the natural
resources sector, and consideration is currently given to
investment opportunities anywhere in the world.
As an investor in upstream oil & gas projects, Reabold aims
to create value from each project by investing in undervalued,
low-risk, near-term upstream oil & gas projects and by
identifying a clear exit plan prior to investment.
Reabold's long term strategy is to re-invest capital made
through its investments into larger projects in order to grow the
Company. Reabold aims to gain exposure to assets with limited
downside and high potential upside, capitalising on the value
created between the entry stage and exit point of its projects. The
Company invests in projects that have limited correlation to the
oil price.
Reabold has a highly-experienced management team, who possess
the necessary background, knowledge and contacts to carry out the
Company's strategy.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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