Reabold Resources ups stake in LNEnergy
Reabold Resources
0.06p
16:55 04/11/24
Oil and gas investor Reabold Resources announced a significant addition to its shareholding in LNEnergy on Tuesday, as it invested £0.25m to increase its stake by an additional 1.6% through the subscription of 18 new ordinary shares at a price of £13,889 each.
FTSE AIM All-Share
736.31
09:10 05/11/24
Oil & Gas Producers
8,125.44
09:09 05/11/24
The AIM-traded firm said that with the new investment, funded from its cash reserves, Reabold's total holding in LNEnergy now stood at 17.6% of its enlarged share capital.
Previously, on 9 May, Reabold unveiled its second option, valid until 29 December, granting it the discretion to acquire an added 127 new ordinary shares in LNEnergy for a cash payment of £1.8m.
If the option was acted on, Reabold's total shareholding in LNEnergy would rise to 26.1%, translating to a collective cash and equity commitment of £4.3m.
The company’s strategic investments came on the heels of it securing its 16.2% equity interest in LNEnergy on 9 May and 12 June.
LNEnergy's prized possession is an exclusive option for a 90% stake in the Colle Santo gas field, which boasts 65 billion cubic feet of 2P reserves, and had two production wells primed and set for development.
Reabold said LNEnergy projected that the field could yield an estimated €11m to €12m in gross post-tax free cash flow each year.
The company had proclaimed on 5 September that the Colle Santo project had received the green light to start its operational phase, after the Abruzzo regional government's affirmation of its early production programme for the Colle Santo gas field.
It said the new investment not only increased its stake in the promising gas resource, but also catalysed the early stages of the associated accelerated work programme.
LNEnergy would onboard Sachin Oza, Reabold’s co-CEO, in the capacity of a board observer.
“Following the positive permitting progress on the Colle Santo gas field announced last week and the subsequent acceleration of the work programme in Italy, we are delighted to be able to further increase our interest in LNEnergy,” said co-chief executive officer Stephen Williams.
“The 65 billion cubic feet field is development ready and is expected to generate significant cash flow once on stream, whilst providing a crucial domestic energy resource for Italy.”
At 1112 BST, shares in Reabold Resources were down 4.21% at 0.09p.
Reporting by Josh White for Sharecast.com.