Update on UK oil and gas assets

RNS Number : 0185C

Reabold Resources PLC

16 January 2018

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR").

REABOLD RESOURCES PLC

"Reabold" or the "Company"

Update on UK Oil and Gas Assets

Reabold Resources Plc (LSE AIM:RBD) is pleased to note today's announcement by United Oil and Gas ("UOG" or "United") that it has farmed into three licences operated by Corallian Energy Limited ("Corallian" or "Corallian Energy"), including P1918 which includes the Colter prospect.  As set out in  Reabold's announcement of 1 November 2017, Reabold has an agreement in place to acquire a 35.4% stake in Corallian Energy.  

UOG will acquire a 10% interest in the licences by way of paying 13.33% of the costs associated with the Colter well, planned for Q2 2018 ("Initial Farmed Interest").  In addition, an option has been granted, which expires at the end of March, under which United can exercise a right to purchase an additional 10% interest in these licences ("Additional Farmed Interest"), on the same terms as the Initial Farmed Interest.

This follows the announcement by Upland Resources Limited ("Upland") on 30 November2017, that it had signed a farm-in agreement with Corallian for a 40% working interest in UK Seaward Production Licence P2235 (UKCS Block 11/24b) (the "P2235 Farm-in Agreement") containing the Wick Prospect.  Upland will pay 53.33% of the estimated cost of the first well on the Wick prospect to earn its 40% interest.  

Stephen Williams and Sachin Oza, Co-CEOs of Reabold, commented on the UOG announcement, "We are delighted that since our investment into Corallian Energy less than three months ago, we have seen two subsequent transactions on Corallian's assets that provide both industry validation as to the quality of the assets, and positive valuation markers relative to our investment price". 

The Corallian Investment was the first to be completed in line with Reabold's strategy to identify strategic oil & gas opportunities with the potential to create significant shareholder value, and was followed by an investment into Danube Petroleum announced on 4 December 2017.  Reabold management continues to assess a number of additional high quality opportunities.   

Highlights - Corallian's Colter Project:

·     Colter is offshore, adjacent to the Wytch Farm oil field,  which has produced in excess of 450 million barrels of oil;

·     A 1986 discovery well, drilled by BP, on Colter recovered 41.9 API oil on test from a 10.5m oil column; 

·     Since the 1980's seismic technology has advanced significantly such that Corallian has used modern techniques to merge and reprocess two offshore 3D seismic datasets which have enabled the identification of over 100m of mapped vertical relief up-dip of the discovery well;

·     An appraisal well is planned to be drilled on Colter by Corallian (Operator) in the first half of 2018;

·     Corallian estimates gross mean prospective resources of 30 million barrels of recoverable oil for the Colter prospect; and

·     Corallian financial modelling based on the above prospective resources forecasts a gross NPV (10) in the success case of £255 million.

Glossary

API - American Petroleum Institute

NPV - net present value at discount rate

Prospective Resource-  those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations. 

For further information please contact:

Reabold Resources plc

Stephen Williams                                                                                                                         c/o Camarco

Sachin Oza                                                                                                                                       [phone]

Beaumont Cornish Limited

Roland Cornish/ James Biddle/Felicity Geidt                                                                   [phone]

Camarco

Billy Clegg James Crothers Oliver Head Whitman Howard Limited - Joint Broker Nick Lovering                                                                                                                    Grant Barker		[phone]         [phone]
Turner Pope Investments (TPI) Ltd - Joint Broker Andy Thacker		[phone]

 

END

 

 

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