Corallian 30th Seaward Licensing Round Award

RNS Number : 0804P

Reabold Resources PLC

23 May 2018

 

23 May 2018

Reabold Resources Plc

("Reabold" or "the Company")

Corallian 30^th Seaward Licensing Round Award

Reabold is pleased to note the announcement from Corallian Energy ("Corallian") regarding the award of three blocks in the 30^th Seaward Licensing Round by the Oil and Gas Authority.

Reabold has a 32.9% interest in Corallian, which gives it exposure to the high-impact offshore UK Continental Shelf ("UKCS") Colter, Wick and Oulton prospects. Following the Oil and Gas Authority's offering of the three Central Graben part-blocks (as set out below), Reabold shareholders are further exposed to Corallian's 100% interest in each of the three new blocks.

Sachin Oza, Co-CEO of Reabold, commented:

"We are delighted to see further progress made in Corallian's portfolio in the months since our initial investment. The portfolio is growing, with exposure to high-impact opportunities at Colter, Wick and Oulton in the short term, and now further potential upside in the UKCS in the medium term."

Detail of the blocks awarded to Corallian can be found from their release which reads the following:

Corallian offered three blocks in the 30th Licensing Round

Corallian Energy Limited is pleased to announce that it has been offered three Central Graben part-blocks in the 30th Seaward Licensing Round by the Oil and Gas Authority. Its interest in each block will be 100%.

Block 29/7b, covers 121 square kilometres, in 90 metres water depth. The block contains the Tertiary Curlew-A oil accumulation discovered by well 29/7-1 (Shell, 1979). Light oil (36o API) was recovered on wireline from an estimated 12 metres of net oil sands with an estimated average porosity of 27%. The near-term work programme will include a Competent Persons Report to support a farmout process. The company plans to drill an appraisal well at Curlew-A during 2019. This well, if successful, will unlock a significant hydrocarbon resource with Corallian estimated mean Prospective Resources of 44 million barrels of oil recoverable (with an upside of 102 million barrels of oil recoverable). The well will also test a Lower Tertiary structural/stratigraphic trap identified by the company (the Sandpiper prospect). Both primary and secondary objectives can be intersected and evaluated by a single vertical appraisal / exploration well that will be drilled by a Jack Up rig to a Total Depth of 2,600 metres sub-sea. The cost of the well is estimated at £9.5 million. The proposed well location is 2 kilometres North East of the discovery well. Future development options will be either via third party access at nearby infrastructure, or by stand-alone FPSO development should an upside outcome be achieved. The Curlew-A anticline remains one of the largest un-appraised Tertiary structures (approximately 21 square kilometres) in the Central North Sea.

Blocks 30/2f and 30/3d are adjacent to each other and cover an area of 39 square kilometres. They are located to the east of the prolific "J-Ridge" and south of the Blane field, in 70 metres water depth. The blocks contain two leads in Jurassic and Triassic sandstones which will be further evaluated as part of the work programme.

ENDS

For further information please contact:

Reabold Resources plc Stephen Williams Sachin Oza	c/o Camarco [phone]
Beaumont Cornish Limited Roland Cornish James Biddle Felicity Geidt	[phone]
Camarco James Crothers Billy Clegg Ollie Head	[phone]
Whitman Howard Limited - Joint Broker Nick Lovering Grant Barker	[phone]
Turner Pope Investments (TPI) Ltd - Joint Broker Andy Thacker	[phone]

Notes to Editors

Reabold Resources is an investor in upstream oil & gas projects with an aim 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. Management believes the current distress in the oil & gas industry presents an opportune time to deploy capital in undervalued assets with huge potential.

Information on Corallian and the three blocks is sourced from Corallian's website: http://www.corallian.co.uk/news.html

 

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