Reabold Resources PLC Update on Market Volatility (0184G)
March 13 2020 - 2:00AM
UK Regulatory
TIDMRBD
RNS Number : 0184G
Reabold Resources PLC
13 March 2020
13 March 2020
Reabold Resources plc
("Reabold" or the "Company")
Update on Market Volatility
Reabold, the AIM investing company which focuses on investments
in pre-cash flow upstream oil and gas projects, notes the following
with respect to current volatile market conditions relating to
COVID-19.
A fundamental aspect of the Reabold business model is to
participate in projects which have low development and operating
costs, thereby reducing sensitivity to the oil price. As announced
on 26 February 2020, the cash operating costs of Reabold California
are US$13 per barrel of oil equivalent, meaning production in
California continues to be profitable and to generate positive free
cash flow at current oil prices.
Reabold's expected work programme for 2020 is fully-funded by
cash already invested into the operating businesses. The programme
includes the testing of West Newton A-2, the drilling of two wells
at West Newton B, the testing of IM-1 and the drilling of IM-2 in
Romania, and the drilling of additional wells in California. We
believe that these projects remain highly economic at current oil
prices.
In addition, Reabold currently has in excess of GBP6 million in
cash beyond the cash invested into the operating entities to fund
the 2020 work programme, which is available and uncommitted at this
time. Reabold and its investee companies are financially robust
under current market conditions and Reabold is in a position to
potentially take advantage of acquisition and investment
opportunities that these conditions present.
For further information please contact :
Reabold Resources plc c/o Camarco
Stephen Williams +44 (0) 20 3757 4980
Sachin Oza
Strand Hanson Limited (Nominated and Financial
Adviser)
James Spinney
Rory Murphy
James Dance +44 (0)20 7409 3494
Stifel Nicolaus Europe Limited - Joint Broker
Callum Stewart
Nicholas Rhodes
Ashton Clanfield +44 (0) 20 7710 7600
Whitman Howard Limited - Joint Broker
Nick Lovering
Grant Barker +44 (0) 20 7659 1234
Camarco
James Crothers
Ollie Head
Billy Clegg +44 (0) 20 3757 4980
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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