Reabold Resources PLC - London-based oil and gas project investor - Enters into conditional convertible loan instrument with Corallian Energy Ltd, which will see Reabold advance GBP1 million to Corallian. Notes the loan is conditional on Corallian receiving consent of 75% or more from its shareholders. Reabold currently has a 37% shareholding in Corallian. Says the convertible loan, including interest at 15% per annum, will convert into new shares in Corallian within 21 months.
Corallian says it intends to use the money to support work related to the submission of a draft field development plan for the Victory gas field, located northwest of the Shetland Islands. It aims to do this before the end of 2021.
"The Victory environmental study will take place this summer, and we are eagerly awaiting the submission of the draft field development plan to the Oil & Gas Authority at the end of this year. Victory is a simple, low-risk project, which has been fully appraised and requires no further pre-development drilling, accelerating the potential return on investment for Reabold," says Co-Chief Executive Stephen Williams.
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Year-to-date change: down 13%
By Zoe Wickens; zoewickens@alliancenews.com
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Reabold Resources (RBD)