Reabold Resources increases stake in LNEnergy
UK-listed Reabold Resources, an oil and gas investing company, on June 12 announced the exercise of its options to increase its interest in LNEnergy by an additional 13.2%.
The increase was made through a cash consideration of £500,000 ($629597.50) and the issuance of 810,810,811 new ordinary shares of 0.1 pence/share each in Reabold at a price of 0.185 pence/share. This follows Reabold's initial subscription on May 9, where it acquired a 3.1% interest in LNEnergy for £250,000. With these exercises, Reabold will now hold a 16.2% equity interest in LNEnergy.
LNEnergy's primary asset is an exclusive option over a 90% interest in the onshore Colle Santo gas field in Abruzzo, Italy, which was discovered in 1966. The field has gas resources with 65bn ft3 of 2P reserves. It is development-ready pending necessary approvals and permits, with two production wells already drilled. The target is to commence production in early 2025, Reabold said.
Reabold added it has conducted extensive due diligence, resulting in increased confidence in obtaining permits for field development. The revised small-scale LNG development has a smaller land footprint and strong environmental credentials, the company said. A two-year, long-term production test is under review, with full production concession approval expected in 2024 for a 20+ year production period.
Reabold's investment supports the development engineering and approvals process, paving the way for project financing and bringing the project to first gas. LNEnergy estimates that the Colle Santo gas field has the potential to generate €11-12mn of post-tax free cash flow per year.
The admission of the consideration shares to trading on AIM is expected to occur on or around June 13. Following admission, the total issued share capital of Reabold will consist of 9,988,198,720 ordinary shares, with a total of 9,939,386,103 voting rights in the company.