(Alliance News) - Reabold Resources PLC on Tuesday said that it has received the next tranche of payment from Shell UK Ltd for the sale of the Corallian Energy Ltd.
Reabold is an oil and gas investing company with a diversified portfolio of exploration, appraisal and development projects.
The firm will receive GBP5.2 million for the second tranche, which follows a GBP3.2 million payment received at the beginning of November. The final consideration payment of GBP4.4 million will be received once development approval has been granted for the Victory gas field, which Reabold expects to happen in the coming months.
Reabold intends to use the proceeds received to advance the development of assets across its portfolio, including the drilling of the key horizontal well at West Newton and the acceleration of the work programme at the Colle Santo gas project in Italy.
"We are delighted to receive the second tranche of the payment from Shell. The sale of the Victory project last year was a significant moment in Reabold's history, proving our strategy to create value for shareholders by identifying, funding and monetising underappreciated but strategically important assets. Reabold played a key role in the development of the Victory project, which will be an important asset to the UK as it looks to increase domestic gas supply," said Co-Chief Executive Officer Stephen Williams.
Reabold Resources shares were trading 4.9% higher at 0.12 pence each in London on Tuesday afternoon.
By Holly Beveridge, Alliance News reporter
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Reabold Resources (RBD)