Business
Investment in LNEnergy
Investment in LNEnergy.
About this update from Reabold Resources Plc
[{"type":"text","content":"\n\n9 May 2023\nReabold Resources plc\n(\"Reabold\" or the \"Company\")\nInvestment in LNEnergy\nReabold Resources plc, the oil & gas investing company with a diversified portfolio of exploration, appraisal and development projects, announces that it has entered into a conditional subscription and option agreement (the \"Subscription Agreement\") with LNEnergy Limited (\"LNEnergy\") and a conditional shareholder option agreement with certain existing shareholders of LNEnergy (the \"Shareholder Option Agreement\") (together, the \"Agreements\"). Pursuant to the terms of the Agreements, Reabold will initially acquire an interest of 3.1% of LNEnergy for cash consideration of £250,000, and receive options to acquire, at its sole discretion, further shares in LNEnergy which would result in Reabold holding a 25.0% shareholding in LNEnergy for aggregate cash and equity consideration of £3.8 million.\nLNEnergy's primary asset is an option over a 90% interest in the Colle Santo gas field, onshore Italy in the Abruzzo region. With 65Bcf of 2P reserves, as estimated by RPS as of 30 September 2022, this is a highly material undeveloped onshore gas resource, particularly in the context of onshore Western Europe, and subject to the necessary approvals and permits, is development ready with no additional drilling required. First gas is targeted for early 2025. This project is aligned with Reabold's strategy to help to progress high quality pre-cash flow projects that can deliver material returns to shareholders.\nAdditional Information on the Agreements and LNEnergy\nUnder the terms of the Subscription Agreement, Reabold has initially subscribed for 32 new LNEnergy shares (representing 3.1% of LNEnergy's enlarged share capital) for an aggregate consideration of £250,000 (the \"Initial Subscription\"), to be satisfied through existing cash resources. In addition, Reabold will receive an option to acquire a further 36 new LNEnergy shares (representing 3.3% of LNEnergy's enlarged share capital at such time) for an aggregate cash consideration of £500,000 (the \"First Option\") and a second option to acquire a further 127 new LNEnergy shares (representing 10.5% of LNEnergy's enlarged share capital at such time) for an aggregate cash consideration of £1,800,000 (the \"Second Option\"), each of which would be satisfied through existing cash reso...