Reabold, the investor in upstream oil and gas projects, is pleased to announce that it has conditionally offered to acquire additional
Highlights
Share offer to acquire up to 13.12% of Corallian Energy shares at a ratio of 474 Reabold shares per Corallian share
The Offer could significantly increase Reabold's position in the low-risk, high potential Victory Gas Discovery to up to 49.99%
Draft Field Development Plan anticipated to be submitted by year end
Planned 3-year gas production plateau from Victory, at a rate of 70 mmscf/d (11,666 boepd) from Q4 2024, delivering over 25 BCF of gas per year
Victory is located near existing infrastructure and in particular the Total-operated Greater Laggan Area
Assuming full take up of the Offer by Corallian shareholders, Reabold would increase its net interest in the NPV of the project by ca.
Letter of intent signed for vessel to undertake environmental survey on Victory, with work planned to commence in
Once completed, the Environmental Impact Assessment will be an important part of the Field Development Plan ('FDP') submission
Conditional Offer to Acquire up to an Additional 13.12% of Corallian
Assuming a full take up of the Offer, Reabold would acquire up to an additional 13.12% of Corallian's issued share capital from existing shareholders, in addition to its existing 36.87% equity position.
By potentially increasing its position in Corallian, Reabold would be increasing its economic interest in the 100% Corallian-owned Victory Gas Discovery, West of Shetland, in which Reabold management sees significant value.
As previously announced, the Victory Gas Discovery was evaluated to have 157 bcf of 2C contingent resource with an associated NPV of
Corallian shareholders may elect to tender up to their entire holding and in excess of their relevant pro rata percentage. However, should aggregate acceptances received be higher than the 13.12% maximum, Corallian shareholders tendering in excess of their pro rata entitlements would be scaled back so as to ensure that all Corallian shareholders have the opportunity to accept their pro rata entitlement to the Offer and so that Reabold's shareholding in Corallian does not exceed 49.99% of Corallian's issued share capital. Accordingly, Reabold would issue a maximum of 468,994,086 Reabold shares assuming a full take up by Corallian shareholders as part of this Offer.
The Offer is conditional upon the satisfaction of certain conditions including, but not limited to, receipt of any necessary regulatory approvals and the passing of a resolution by the shareholders of Corallian. If the conditions are not satisfied by
Victory Operational Update
A letter of intent has been signed for an environmental survey planned for
The work associated with the FDP is intended to de-risk the project to the point where the planned liquidity event for Corallian shareholders can take place, expected by early 2022.
Corallian also continues to progress the other projects in its portfolio, including in the West of Shetland (Laxford discovery and Scourie prospect in Licence P2605, and the Sandvoe prospect in Licence P2493), the Viking Graben (Unst and Quoys prospects in Licence P2464, and the
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Notes to Editors
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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