(Alliance News) - Reabold Resources PLC on Tuesday said it is close to acquiring just shy of an additional 17% stake in the onshore UK licence PEDL 183, which includes the West Newton Field.
The oil and gas project investor reported the "conditional acquisition" of the stake from Humber Oil & Gas Ltd.
Reabold said it has forked out GBP1.4 million and 350.0 million shares to fund the deal, which still needs the approval of the Oil & Gas Authority, the UK regulator.
Should the deal go ahead, Reabold will have a roughly 56% interest in PEDL 183.
Chief Executive Officer Stephen Williams said: "We are delighted to have agreed to significantly increase our exposure to West Newton, which we believe could be a key driver of value for Reabold, at a highly attractive price. Our increased investment should facilitate the unlocking of the large potential value we see at West Newton and we look forward to the upcoming activity, including the drilling of the B-1 well where site construction is currently underway."
Shares in the company closed 4.2% higher at 0.62 pence each in London on Tuesday.
By Eric Cunha; ericcunha@alliancenews.com
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Reabold Resources (RBD)