Reabold Resources Regulatory News (RBD)

20 October 2021

Reabold Resources plc 

("Reabold" or the "Company") 

Victory CPR and Corallian Strategic Review

Reabold, the AIM investing company which focuses on investments in upstream oil and gas projects, which owns 49.99% of Corallian Energy Limited ("Corallian"), notes that Corallian has decided to conduct a formal review of the various strategic options available to maximise value for all its shareholders.

Corallian has engaged an independent financial adviser, H&P Advisory Limited ("Hannam & Partners"), to conduct the strategic review. As part of the review, Hannam & Partners will approach third parties, who could potentially be interested in making an offer for up to 100% of the fully diluted share capital in Corallian.

Corallian holds a 100% interest in the Victory gas discovery in block 207/1a, located approximately 80km NW of the Shetland Isles, and 17km from the closest pipeline infrastructure tie in location (Greater Laggan Area). The Victory project is a relatively simple, sub-sea tie-back gas development (in 158m water-depth), which has been fully appraised and requires no additional pre-development drilling. A Competent Persons Report (CPR) has recently been completed by RPS Energy Limited (RPS), following the finalisation of both static and dynamic modelling, together with well / network optimisation studies for the development. RPS estimates a total Victory field 2C or best / mid case technically recoverable resource of 179bcf dry gas1. This estimate represents a 14% increase over the previous interim CPR completed by SLR Consulting in December 2020 of 157bcf of technically recoverable gas. Corallian's updated 2C economic valuation (NPV10) of Victory, based on an historical average gas price valuation of 50p/therm, has increased from £146 million to £193 million. Corallian remains on track to submit its draft Victory Field Development Plan to the OGA before the end of 2021, together with the Environmental Statement for the project which will be lodged concurrently with BEIS (OPRED).

The strategic review is being conducted by Corallian's Board. Parties with a possible interest in making a proposal should contact Hannam & Partners on the contact details set out below.

The strategic review is at an early stage and there is no guarantee that it will result in any offer being made (in whole or in part) for Corallian. Reabold remains supportive of Corallian, its Board, and the timing of this strategic review. Reabold believes Corallian's flagship Victory gas development presents a compelling investment opportunity to any prospective investor.

Stephen Williams, co-CEO of Reabold, commented:

"We are extremely pleased with the progress that has been made on the Victory project over the last year, and the development opportunity continues to look highly attractive, particularly against the commodity backdrop we are experiencing at present.

"Reabold is in full agreement with the Corallian board that the time is right to assess options going forwards via this strategic review, and that our significant exposure to the Victory project will at the appropriate time deliver considerable value to Reabold and our shareholders."

1 the 2C or best / mid case technically recoverable contingent resources estimate is a Corallian derived aggregate of "contingent resources - development pending" (145bcf) and "contingent resources - development unclarified" (34bcf)" from the RPS CPR (dated October 2021)

Pursuant to the requirements of the AIM Rules - Note for Mining and Oil and Gas Companies, the technical information contained in this announcement has been reviewed by Dr Jeremy Jarvis as a Qualified Person. Jeremy has more than 35 years' experience as a petroleum geologist, holds a BSc in Geology from the University of Dundee and a Ph.D. from Imperial College, University of London. He is a member of the American Association of Petroleum Geologists and the Petroleum Exploration Society of Great Britain.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.

For further information, contact:

About H&P Advisory Limited

H&P Advisory Limited ("Hannam"), which is authorised and regulated by the FCA in the United Kingdom, is acting exclusively as financial adviser to Corallian and no one else in connection with the subject matter of this Announcement, and shall not be responsible to anyone other than Corallian for providing the protections afforded to clients of Hannam, or for providing advice in connection with the subject matter of this Announcement. Neither Hannam nor any of its subsidiaries, branches or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Hannam in connection with this Announcement, any statement contained herein or otherwise.

H&P Advisory Limited

Samuel Merlin

Sean Nash

+44 (0) 20 7907 8500

Notes to Editors

Reabold Resources plc is an investing company investing in the exploration and production ("E&P") sector. The Company's investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world.

As an investor in upstream oil & gas projects, Reabold aims 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.