Reabold Resources PLC Victory Gas Discovery Presentation (5033F)
November 17 2020 - 1:00AM
UK Regulatory
TIDMRBD
RNS Number : 5033F
Reabold Resources PLC
17 November 2020
17 November 2020
Reabold Resources plc
("Reabold" or the "Company")
Victory Gas Discovery Presentation
Reabold, the AIM investing company which focuses on investments
in upstream oil and gas projects, is pleased to announce the
publication of a presentation on the Victory Gas Discovery
("Victory"). Corallian Energy Limited ("Corallian"), in which
Reabold has a 34.9 per cent. interest, was offered a 100 per cent.
interest in block 207/1a (the "Licence"), which contains the
Victory discovery. Corallian was offered the Licence by the Oil
& Gas Authority ("OGA") as part of the 32(nd) Offshore
Licencing Round.
Victory is a simple, low-risk gas development which has been
fully appraised and requires no additional pre-development
drilling. Victory is located near to existing local infrastructure,
with the development of Victory expected to be via a single-well
sub-sea tieback. The Licence was originally offered to Texaco in
1972 and it drilled a discovery well in 1977 that flowed at circa 9
mmscf/d from 200 feet (circa 60.6 metres) of net gas pay in the
Lower Cretaceous sandstones, proving reservoir commerciality. SLR
Consulting estimates that Victory has 2C contingent resources of
157 BCF.
Corallian plans to submit the Victory Field Development Plan to
the OGA by the end of 2021, with a Competent Persons Report (CPR)
expected to be completed by the end of April 2021 and first gas
production in Q4 2024. A three year gas production plateau is
planned at 70 mmscf/d from 2025, delivering over 25 BCF per year,
with total planned gas production recovered over the 8-year field
life of 157 BCF.
Valuations (NPV10) of Victory currently range from circa GBP85
million (based on current gas price forecasts of 42.5p/therm) to
circa GBP146 million (based on historical average gas price and
base case valuation of 50p/therm). Based on Reabold's 34.9 per
cent. interest in Corallian, these valuations net to Reabold range
from circa GBP30 million to circa GBP51 million. Payback of cash
invested at a project level is expected to be achieved within 12
months of first gas (assuming a historical average gas price).
A presentation containing more information on the Victory Gas
Discovery can be found at:
https://reabold.com/investor-relations/reports-and-presentations/
Stephen Williams, Co-CEO of Reabold, commented:
"Victory, via our existing interest in Corallian, brings further
optionality to Reabold's portfolio, with additional upcoming
activity on the UKCS expected. The low-risk nature of the gas
development, which requires no further pre-development drilling and
has anticipated fast payback, fits well into the Reabold strategy.
We look forward to updating shareholders on Corallian's progress at
Victory, with key milestones expected to be achieved over the year
ahead."
ENDS
For further information, contact:
Reabold Resources plc c/o Camarco
Sachin Oza +44 (0) 20 3757
Stephen Williams 4980
Strand Hanson Limited - Nomad & Financial +44 (0) 20 7409
Adviser 3494
James Spinney
Rory Murphy
James Dance
Stifel Nicolaus Europe Limited - Joint Broker +44 (0) 20 7710
Callum Stewart 7600
Simon Mensley
Ashton Clanfield
Panmure Gordon - Joint Broker
Hugh Rich +44 (0) 207 886
Nick Lovering 2733
Camarco
James Crothers
Ollie Head +44 (0) 20 3757
Billy Clegg 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.
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END
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