12 December 2024
Reabold Resources plc
("Reabold" or the "Company")
Further investment in Rathlin Energy (
Reabold Resources plc, the investing company focussed on developing strategic gas projects for European energy security, is pleased to announce that it is has agreed to acquire 20.4% of the shares in Rathlin (the "Transaction") from Connaught Oil & Gas Limited ("Connaught") for a total cash consideration of
Rathlin is operator of the PEDL183 Licence on the West Newton gas development, located onshore
West Newton is the largest undeveloped onshore gas field in the
West Newton phased development programme
· The North Sea Transition Authority ("NSTA") has approved a revised work programme for PEDL 183 to:
o Re-enter and recomplete or sidetrack one of the currently suspended wells on or before 30 June 2026;
o Re-enter and recomplete or sidetrack one of the remaining suspended wells or drill and complete a new deviated or horizontal well on or before 30 June 2027; and
o Submit a field development plan on or before 30 June 2027.
· Rathlin, as the operator, has applied to carry out a reservoir stimulation on the existing West Newton West Newton A-2 well.
o Reabold believes this to be a key step in fully de-risking the subsurface characteristics of the project at limited cost.
· A Gas Export Feasibility study, completed by CNG Services Limited, concluded that, as a precursor to the intended West Newton full field development, an initial single well development and gas export plan can accelerate production and cash flow whilst requiring limited capital expenditure, giving the joint venture ("JV") partnership the ability to drill future wells out of cash flow.
o The single well development plan benefits from early cash generation with the ability to drill future wells out of cash flow. Following drilling and testing of this horizontal well, first gas is expected after 18 months with an associated development capex estimated to be ca.
o New initial phase, based upon a single well development, materially reduces the financial hurdle to reach production and retains the potential for full development.
Sachin Oza, Co-CEO of Reabold, commented: "We are thrilled to be further increasing our interest in Rathin as it delivers the upcoming work programme, which would de-risk the West Newton development plans. Furthermore, Reabold will also be increasing its exposure to the broader PEDL 183 licence area which, we believe, has significant running room beyond West Newton, and on highly attractive terms.
"The
For further information, contact:
Reabold Resources plc Sachin Oza Stephen Williams
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c/o Camarco +44 (0) 20 3757 4980
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Cavendish - Nominated & Financial Adviser and Broker Neil McDonald Pearl Kellie
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+44 (0) 20 7220 0500
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Camarco Billy Clegg Rebecca Waterworth Sam Morris
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+44 (0) 20 3757 4980
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Notes to Editors
Reabold Resources plc has a diversified portfolio of exploration, appraisal and development oil & gas projects. Reabold's strategy is to invest in low-risk, near-term projects which it considers to have significant valuation uplift potential, with a clear monetisation plan, where receipt of such proceeds will be returned to shareholders and re-invested into further growth projects. This strategy is illustrated by the recent sale of the undeveloped Victory gas field to Shell, the proceeds of which are being returned to shareholders and re-invested.
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