Exercise of Warrants in Corallian

1 December 2020

Reabold Resources plc

("Reabold" or the "Company")

Exercise of Warrants in Corallian

Reabold, the AIM investing company which focuses on investments in upstream oil and gas projects, is pleased to announce that it has exercised 272,727 warrants ("Warrants") over shares in Corallian Energy Limited ("Corallian"), at a subscription price of £2.20 per share, equating to an investment of approximately £600,000. Following the exercise of the Warrants, Reabold will hold 2,780,049 Corallian shares, representing approximately 36.9 per cent. of Corallian's then issued share capital.

On 21 November 2019, Warrants were issued to all Corallian shareholders on the register at that date, with exercise of such Warrants being conditional on the successful offer of any licence(s) to Corallian by the Oil & Gas Authority (the "OGA"), as part of the 32nd UK oil and gas licencing round. The expiry date of the Warrants was 30 November 2020.

As announced on 3 September 2020, the OGA offered to Corallian 100 per cent. interests in the Victory gas discovery ("Victory") in block 207/1a, the Laxford gas discovery and Scourie prospects in blocks 214/29c and 214/30c, and the Oulton oil discovery in block 3/11a.

Victory is a simple, low-risk gas development located near to existing local infrastructure and has been fully appraised, requiring no additional pre-development drilling. Corallian plans to submit the Victory Field Development Plan ("FDP") to the OGA by the end of 2021, with first gas production anticipated in Q4 2024. From 2025, a 3-year gas production plateau is planned at 70 mmscf/d (11,666 boepd), delivering over 25 BCF gas per year.

The Victory project value (NPV10) is estimated to be ca. £85 million based on current gas price forecast of 42.5 pence per therm to ca. £146 based on the historical average gas price of 50p/therm. Therefore, the value (NPV10) of Victory, net to Reabold, based on its 36.9 per cent. interest in Corallian, is £31m - £54m.

Further information on Victory can be found in the following presentation:

https://reabold.com/wp-content/uploads/2017/10/Reabold-Victory-Presentation-FINAL.pdf 

Stephen Williams, Co-CEO of Reabold, commented:

"We are delighted to exercise these Warrants in Corallian, increasing our equity interest at such an exciting time for the company. The Victory discovery, which is thought to be amongst the lowest risk of development projects offered in the 32nd Round, brings further optionality and additional upcoming activity to the Reabold portfolio."

For the year ended 31 October 2019, Corallian reported a loss of £7,161,415 and, as at 31 October 2019, reported net assets of £1,974,480.

ENDS

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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.