Business
Further Investment in LNEnergy
Further Investment in LNEnergy.
About this update from Reabold Resources Plc
[{"type":"text","content":"\n\n12 June 2023\nReabold Resources plc\n(\"Reabold\" or the \"Company\")\nFurther Investment in LNEnergy\nReabold Resources plc, the oil & gas investing company with a diversified portfolio of exploration, appraisal and development projects, is pleased to announce the exercise of certain of its options to increase its interest in LNEnergy Limited (\"LNEnergy\") by a further 13.2%, for an aggregate cash consideration of £500,000, to be satisfied through existing cash resources (the First Option), and £1,500,000 through the issue of 810,810,811 new ordinary shares of 0.1p each in the capital of the Company (\"Ordinary Shares\") at a price of 0.185 pence per Ordinary Share (the \"Consideration Shares\") to certain LNEnergy shareholders (the Shareholder Option).\nThese exercises follow the Company's announcement of 9 May 2023 entitled \"Investment in LNEnergy\" announcing Reabold's initial subscription to acquire a 3.1% interest in LNEnergy for a cash consideration of £250,000. As a result, Reabold will own a 16.2% equity interest in LNEnergy.\nFurthermore, Reabold retains the Second Option, expiring 30 November 2023, to acquire, at its sole discretion, a further 10.5% in new shares in LNEnergy for an aggregate cash consideration of £1,800,000, which would be satisfied through either cash or shares, at the option of LNEnergy. If the Second Option is exercised, it would result in Reabold holding a 25.0% interest in the enlarged share capital of LNEnergy for a total cash and equity consideration of £4,050,000.\nKey points\n· LNEnergy's primary asset is an exclusive option over a 90% interest in the onshore Colle Santo gas field in Abruzzo, Italy, discovered in 1966:\no Highly material gas resource, particularly in the context of onshore Europe; 65Bcf of 2P reserves[1]\no Development ready, subject to approvals and permits\no Two production wells already drilled, no additional drilling required; first gas targeted for early 2025\n \n· Since the initial agreement on 9 May 2023, Reabold has undertaken significant due diligence work, resulting in increased confidence in the likelihood of permits being granted for field development:\no Revised small-scale LNG development has smaller land footprint and strong environmental credentials\no Two-year, long-term producti...