2021?4 Jan 2021 22:34
Everyone will have their own thoughts on what is likely to happen with Reabold Resources this year 2021.
Here are mine, they are not of a technical nature, just based on my own experience with regard to how businesses run, and more specifically how small oil and gas exploration companies proceed. Forget for one moment that RBD is classed as a investment company, it will follow the well trodden path of its O & G predecessors.
I have taken into consideration that Reabold Resources is just one of many companies that Stephen and Sachin are directors of, some of which are Public and others in Private hands, all with the same hands on the tiller. Some based in the UK and others not. Yet they are all have a common thread that binds them together. Some dependent more than others for their ultimate success or demise. And I am not suggesting for one minute there is any 'kite flying' or impropriety going on. On the contrary, the rewards for ultimate success with West Newton could be huge.
I am of the opinion (and not alone) in thinking that the company is now in a position where West Newton is the only 'real game in town'. As much as they have tried to make it otherwise by investing in other ventures, the sum of all the rest remains less than that of W.N. This eclipses both Colter and Wick combined.
Very probably the company, following the upcoming RNS's on West Newton, will advise shareholders that more appraisal wells will need to be drilled in the East Yorkshire locality,; this before it will be able to provide a definitive answer as to its commerciality. It will obviously need further funding, and not only for this project in my opinion.
Without doubt the £5M drawdown facility secured with Acuitas will be nowhere near sufficient, and a further substantial placement will be needed with the accompanying dilution.
Whilst Reabold Resources may eventually be sold for a substantial sum, I do believe that this will take years and not months to come to fruition as many hope for. In essence it will be a long term investment.
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