Reabold Resources Regulatory News (RBD)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR"). IN ADDITION, MARKET SOUNDINGS (AS DEFINED IN MAR) WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION AS PERMITTED BY MAR. THAT INSIDE INFORMATION IS SET OUT IN THIS ANNOUNCEMENT AND HAS BEEN DISCLOSED AS SOON AS POSSIBLE IN ACCORDANCE WITH PARAGRAPH 7 OF ARTICLE 17 OF MAR. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION IN RELATION TO THE COMPANY AND ITS SECURITIES

REABOLD RESOURCES PLC

"Reabold" or the "Company"

Investment in UK Oil and Gas Assets

Reabold Resources Plc (LSE AIM:RBD) is pleased to announce that it has today signed two share subscription agreements to invest a total of £1.5million in Corallian Energy Limited ("Corallian"), a private UK oil and gas appraisal and exploration company (the "Investment"). Corallian has a portfolio of UK oil & gas licences, including the Colter appraisal project ("Colter"), that Corallian management states has a high chance of success given the appraisal nature of the project together with industry comparative low drilling costs.

The total subscription is for £1.5million which will give Reabold a 35.4 percent interest, with the right to appoint a director to the board of directors of Corallian. An initial £500,000 subscription in Corallian (the "Tranche A Shares") will be followed by £1 million at the time of the authorisation for expenditure by the joint venture partnership of P1918 in respect of the Colter well, expected early 2018. A summary of the share subscription agreements is set out below in Schedule A.

Corallian holds five licence interests in the UK, one of which is a 60 percent interest in UK licence P1918 which includes the Colter prospect. P1918 is held by a joint venture between Corallian (60%), the operator and Corfe Energy Limited (40%).

The Investment is the first to be completed in line with Reabold's strategy to identify strategic oil & gas opportunities with the potential to create significant shareholder value. The Investment will be funded from existing Reabold cash reserves and follows the recent successful fund raises; management continues to assess a number of other high quality opportunities.

Highlights - Corallian's Colter Project:

· Colter is offshore, adjacent to the Wytch Farm oil field, which has produced in excess of 450 million barrels of oil;

· A 1986 discovery well, drilled by BP, on Colter recovered 41.9 API oil on test from a 10.5m oil column;

· Since the 1980's seismic technology has advanced significantly such that Corallian has used modern techniques to merge and reprocess two offshore 3D seismic datasets which have enabled the identification of over 100m of mapped vertical relief up-dip of the discovery well;

· An appraisal well is planned to be drilled on Colter by Corallian (Operator) in the first half of 2018;

· Corallian estimates gross mean prospective resources of 30 million barrels of recoverable oil for the Colter prospect; and

· Corallian financial modelling based on the above prospective resources forecasts a gross NPV (10) in the success case of £255 million.

Stephen Williams and Sachin Oza, Co-CEOs of Reabold, commented on the Investment, "We are delighted that the first project since joining Reabold is something as exciting and impactful as Corallian's five UK licence interests and in particular, the Colter appraisal well. We look forward to continuing to work closely with the Corallian team. This is an excellent time to put capital to work in high quality oil & gas projects, and we continue to assess a number of opportunities". 

Glossary

API - American Petroleum Institute

NPV - net present value at discount rate

Prospective Resource - those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.

Further Information:

The unaudited accounts of Corallian for the period ended 31 October 2016 show no turnover, an operating loss before taxation of £125,343 and as at that date, total assets less current liabilities of £624,657.

For further information please contact:

Reabold Resources plc

Stephen Williams c/o Camarco

Sachin Oza +44 (0) 20 3757 4980

Beaumont Cornish Limited

Roland Cornish/ James Biddle/Felicity Geidt +44 (0) 20 7628 3396

Camarco

SCHEDULE A

Reabold has today entered into two share subscription agreements with Corallian to subscribe for 1,111,111 ordinary shares in the issued share capital of Corallian representing 35.4% of the issued share capital of Corallian for an aggregate subscription price of £1,500,000 as follows:

Unconditional Share Subscription Agreement

Reabold has entered into an unconditional share subscription agreement to subscribe for 370,370 ordinary shares in the issued share capital of Corallian ("Tranche A Shares") for an aggregate subscription amount of £500,000 which amount is payable immediately against transfer to Reabold of the Tranche A Shares. The Tranche A Shares represent 15.4% of the issued share capital of Corallian.

Conditional Share Subscription Agreement

Reabold has entered into a conditional share subscription agreement to subscribe for 740,741 ordinary shares in the issued share capital of Corallian ("Tranche B Shares") for an aggregate subscription amount of £1,000,000, representing 23.6% of the enlarged issued share capital of Corallian and which subscription is conditional upon the joint venture partners in licence P1918 in respect of the Colter appraisal project approving an authorisation for expenditure for the drilling of the Colter well prior to 30 April 2018 failing which Reabold's obligation to subscribe for the Tranche B Shares terminates. On issue of the Tranche B Shares to Reabold, and for so long as Reabold holds more than 30% of the issued share capital of Corallian, Reabold has the right to appoint a director to the board of directors of Corallian.

SCHEDULE B

http://www.rns-pdf.londonstockexchange.com/rns/1801V_-2017-10-31.pdf 

Note: licences set out above granted by the Oil & Gas Authority in the UK ("OGA"), referenced "P" for seaward petroleum production licences and "PEDL" for onshore petroleum exploration and development licences.