REG - Reabold Resources - LNEnergy Update

Reabold ResourcesAnnouncement

20/08/2024 07:00

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RNS Number : 9964A  Reabold Resources PLC  20 August 2024

 

20 August 2024

Reabold Resources plc

("Reabold" or the "Company")

Further Investment into LNEnergy

LNEnergy Update

 

Reabold Resources plc, the investing company focussed on developing strategic
gas projects for European energy security, is pleased to announce that it has
agreed to increase its interest in LNEnergy Limited ("LNEnergy") by a further
1.0% through the subscription of 17 new ordinary shares for a cash
consideration of approximately £205,000, at a price of £12,047 per share.
This will take Reabold's total shareholding to approximately 27.1% of
LNEnergy's enlarged share capital.

LNEnergy has also agreed to grant Reabold a warrant (the "Warrant") to
subscribe in cash, at the Company's sole discretion, for a further
approximately £747,000 worth of new ordinary shares at a price of £12,047
per share. The Warrant has an exercise period of six months and, if exercised,
would take Reabold's shareholding in LNEnergy to approximately 30.6% of its
enlarged share capital.

LNEnergy is the manager and owner of a 20% interest in LNEnergy S.R.L.
("LNEnergy SRL"), the Italian company which has applied for the Colle Santo
gas field concession (with a 90% interest), and has an option to acquire the
remaining 80% interest in LNEnergy SRL on or before 1 February 2025 (the
"Option"), with an exercise price of US$11 million.

The Colle Santo gas field is a highly material gas resource with an estimated
65Bcf of 2P reserves(1), with two production wells already drilled and
flow-tested, making the field development ready. LNEnergy believes that the
field has the potential to generate an estimated €11-12m of gross post-tax
free cash flow per annum.

As at 30 September 2022, LNEnergy reported unaudited net assets of US$746,034.
LNEnergy's financial statements for the year ended 30 September 2022 did not
include income statement items; however, its management accounts reported a
loss for the 15 months ended 31 December 2023 of US$3.1 million and as at 31
December 2023, had net assets of US$888,348.

Stephen Williams, Co-CEO of Reabold, commented:

"We are extremely pleased once again to be able to increase our interest in
LNEnergy. Through the agreed Warrant, Reabold will be able, at its discretion,
to further increase its investment in LNEnergy as the regulatory process for
Colle Santo progresses.

"The Colle Santo project holds significant gas reserves and can be a valuable
source of domestic energy supply for Italy, notably in the form of LNG. We
remain encouraged by progress through the regulatory process and we look
forward to providing a further update to shareholders in due course."

(1) RPS estimate, September 2022

 

For further information, contact:

 

 Reabold Resources plc                                      c/o Camarco

 Sachin Oza                                                 +44 (0) 20 3757 4980

 Stephen Williams

 Strand Hanson Limited - Nominated & Financial Adviser      +44 (0) 20 7409 3494

 James Spinney

 James Dance

 Rob Patrick

 Cavendish - Broker                                          +44 (0) 20 7220 0500

 Neil McDonald

 Pearl Kellie

 Camarco                                                    +44 (0) 20 3757 4980

 Billy Clegg

 Rebecca Waterworth

 Sam Morris

 

Notes to Editors

 

Reabold Resources plc has a diversified portfolio of exploration, appraisal
and development oil & gas projects. Reabold's strategy is to invest in
low-risk, near-term projects which it considers to have significant valuation
uplift potential, with a clear monetisation plan, where receipt of such
proceeds will be returned to shareholders and re-invested into further growth
projects. This strategy is illustrated by the recent sale of the undeveloped
Victory gas field to Shell, the proceeds of which are being returned to
shareholders and re-invested.

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