Completion of Investment in Rathlin Energy

3 December 2018

Reabold Resources Plc

("Reabold" or "the Company")

Completion of Investment in Rathlin Energy (UK) Ltd

Reabold, the investor in pre-cash flow upstream oil and gas projects, further to its announcement of 5 November 2018, is pleased to announce the completion of its 37.08 per cent. investment in Rathlin Energy (UK) Ltd ("Rathlin").

Completion of the deal was conditional on, inter alia, Connaught Oil & Gas Limited ("Connaught") agreeing to settle a liability of £33.8 million owed to it by Rathlin and the finalisation of a farm out, by Rathlin, of Licence PEDL183 (onshore UK) to Union Jack Oil plc ("Union Jack") and Humber Oil & Gas Ltd ("Humber") (the "Farm Out"), resulting in Rathlin retaining a 66.67 per cent. equity interest in Licence PEDL183. These conditions have now been satisfied.

Licence PEDL 183 contains the significant West Newton A-1 gas discovery, with an appraisal well planned for H1 2019. The well will test two targets; the first target is the Kirkham Abbey Formation gas discovery which has an estimated 72 per cent chance of success and an NPV of $247m* and the second target is a deeper Cadeby Formation reef flank oil prospect, considered to have an NPV of $850m and an estimated 24 per cent. chance of success*.

In line with Reabold's investment strategy, West Newton will bring near-term operational activity and, in a success case, offer a fast pathway to monetisation through its proximity to existing gas pipelines and infrastructure.

Stephen Williams, Co-Chief Executive Officer of Reabold Resource, is to be appointed to the Board of Rathlin. Reabold retains the right to appoint a director to the Rathlin board whilst continuing to hold an equity interest of more than 15 per cent. in the company.

In 2017, Deloitte prepared a CPR incorporating both the data from the West Newton discovery well and subsequently acquired 3D seismic data over the field. The Deloitte CPR assigns Contingent Resource to the Kirkham Abbey gas formation and is the source of management volumetric assessments.

For the year ended 31 December 2017, Rathlin recorded a loss after tax of £1.3 million and reported net liabilities of £30 million.

 *Connaught Management estimate (Note: This estimate is based on the economic evaluations and most recent price forecasts provided by Deloitte LLP for the CPR, updated by Connaught)

Stephen Williams, Co-CEO, commented: 

"Sachin and I are delighted to have successfully completed our investment in Rathlin. We view this as a highly opportune moment to invest in this premier UK onshore opportunity."

"With a dual-target appraisal well planned to begin in H1 2019, we look forward to working closely with Rathlin and updating shareholders as further operational progress is completed over the coming months."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

ENDS

For further information please contact:

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.