Last checked at 27 Feb 2018 12:30
27 February 2018
REABOLD RESOURCES PLC
"Reabold" or "the Company"
Company Update regarding the P2235 "Wick" Licence
Reabold Resources, the investor in pre-cash flow upstream oil and gas projects, is pleased to note the releases from Upland Resources Limited ("Upland") and Baron Oil PLC ("Baron Oil") regarding the P2235 licence.
This morning Upland noted that its wholly owned subsidiary, Upland resources (UK Onshore) Limited, has sufficient funds to satisfy its obligations under the farm-in agreement dated 29 November 2017 with Corallian energy Limited ("Corallian") for a 40% working interest in UK Seaward Production Licence P2235 and that the board of Upland has approved the farm-in by Upland UK. The Completion remains conditional on, inter alia, the approval by the UK Oil & Gas Authority of Upland UK as a farminee to the P2235 Licence and the P2235 Licence continuing in full force and effect.
In a separate announcement, Baron Oil announced that precedent to the Option Agreement entered into with Corfe Energy Limited to be assigned part of its right to farm in to an interest held by Corallian, Baron Oil will now enter into a fully-termed farmout agreement under which, subject to necessary regulatory consents, it will pay 20% of the costs of the Wick well (currently estimated at £840,000), plus £6,500 in back costs, to earn a 15% interest in the licence.
Stephen Williams, Co-CEO of Reabold Resources, commented:
"Upland Resources' and Baron Oil's farm-in to the P2235 Licence are two of multiple farm-in processes which have been facilitated by the execution of Reabold Resources' stated strategy.
We look forward to updating shareholders on further progress on the Colter and Wick licences which Corallian Energy, who are fully funded for both well projects and which Reabold have a 35.4% interest in, anticipate to begin drilling in Q2 and Q3 2018 respectively."
ENDS
For further information please contact:
Reabold Resources plc Stephen Williams Sachin Oza
| c/o Camarco +44 (0) 20 3757 4980 |
Beaumont Cornish Limited Roland Cornish James Biddle Felicity Geidt
| +44 (0) 20 7628 3396 |
Camarco Billy Clegg James Crothers Ollie Head
| +44 (0) 20 3757 4980 |
Whitman Howard Limited - Joint Broker Nick Lovering Grant Barker
| +44 (0) 20 7659 1234 |
Turner Pope Investments (TPI) Ltd - Joint Broker Andy Thacker | +44 (0) 20 3621 4120 |
Notes to Editors
Reabold Resources is an investor in upstream oil & gas projects with an aim to create value from each project by investing in undervalued, low-risk, near-term upstream oil & gas projects and by identifying a clear exit plan prior to investment.
Reabold's long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.
Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company's strategy. Management believes the current distress in the oil & gas industry presents an opportune time to deploy capital in undervalued assets with huge potential.