Reabold Resources PLC - Australia-based minerals exploration company - Makes conditional offer to acquire up to an additional 13% of Corallian Energy Ltd in exchange for Reabold shares, at a ratio of 474 Reabold shares per Corallian share.
Offer can increase Reabold's interest in Corallian Energy to a maximum of 50%, as well as the company's position in the offshore Victory gas discovery in the UK Continental Shelf.
Should the offer be fully taken up, Reabold would increase its net interest in the net present value of the project to GBP72 million from GBP53 million.
Looking ahead, the draft field development plan is set to be submitted by the end of 2021, with a planned three-year gas production plateau from Victory, at a rate of 11,666 barrels of oil equivalent per day from the fourth quarter of 2024, delivering 25 billion cubic feet of gas per year.
"We see Victory as not only adding significant value to Reabold, but also as one of the lowest risk development projects offered in the 32nd Round and one of the best remaining undeveloped assets in the UK Continental Shelf. The Victory development is likely to be relatively simple as it can utilise nearby existing infrastructure, in particular that of the Greater Laggan Area operated by Total, and as such offers a fast-tracked timeline to production," said Co-Chief Executive Officer Stephen Williams.
Current stock price: 0.70 pence
Year-to-date change: up 6.1%
By Dayo Laniyan; email@example.com
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