Business
Intention to increase Corallian Energy investment
Intention to increase Corallian Energy investment.
About this update from Reabold Resources Plc
[{"type":"text","content":"\n \nRNS Number : 5784E Reabold Resources PLC 12 February 2018 \n\n12 February 2018\n \nReabold Resources Plc \n\"Reabold\" or \"the Company\"\n \nIntention to increase investment in Corallian Energy Limited\n \nReabold Resources, the investor in pre-cash flow upstream oil and gas projects, is pleased to provide an update on its investment in Corallian Energy Limited (\"Corallian\"). \n \nOn 1 November 2017, Reabold announced the signing of two share subscription agreements (\"the investment\") in Corallian, whose portfolio of UK oil and gas licenses includes the Colter prospect, offshore South of England. The investment, the first in line with Reabold's stated strategy, resulted in the prospect becoming fully-funded at a 40% planned Corallian working interest, and comprised £1.5 million in two tranches to acquire a 35.4 percent interest in Corallian, and also included the right to appoint a director to the board. \n \nSince Reabold's investment, we are delighted that significant progress has been achieved within the Corallian portfolio, including the farm out of Colter to United Oil & Gas, and the farm out of its Wick prospect to Upland Resources and Corfe Energy for a fully carried well at 25% working interest. \n \nCorallian has informed the Company of its intention to raise additional capital (\"the fundraise\") in order to increase its exposure to the Colter prospect from 40% to 50%, to increase its exposure to the Wick prospect from 25% to 40%, and to further progress additional assets including the Oulton prospect. Following the fundraise Corallian will be fully funded for all of this activity. \n \nIt is Reabold's intention to participate in the fundraise in order to increase its exposure to Corallian, and thus to Colter, Wick and the additional Corallian opportunities. \n \nReabold is fully funded from its existing cash balances to participate in this raise as planned, and will continue to have cash on its balance sheet to pursue additional exciting opportunities. \n \nReabold is pleased to announce that the drilling of Colter remains on track for the first half of 2018. The Company also notes the release on 2 February 2018 by Upland Resources PLC, Operator of th...