Business
LNEnergy Update
LNEnergy Update.
About this update from Reabold Resources Plc
[{"type":"text","content":"\n\n \n20 August 2024\nReabold Resources plc\n(\"Reabold\" or the \"Company\")\nFurther Investment into LNEnergy\nLNEnergy Update\n \nReabold Resources plc, the investing company focussed on developing strategic gas projects for European energy security, is pleased to announce that it has agreed to increase its interest in LNEnergy Limited (\"LNEnergy\") by a further 1.0% through the subscription of 17 new ordinary shares for a cash consideration of approximately £205,000, at a price of £12,047 per share. This will take Reabold's total shareholding to approximately 27.1% of LNEnergy's enlarged share capital.\nLNEnergy has also agreed to grant Reabold a warrant (the \"Warrant\") to subscribe in cash, at the Company's sole discretion, for a further approximately £747,000 worth of new ordinary shares at a price of £12,047 per share. The Warrant has an exercise period of six months and, if exercised, would take Reabold's shareholding in LNEnergy to approximately 30.6% of its enlarged share capital.\nLNEnergy is the manager and owner of a 20% interest in LNEnergy S.R.L. (\"LNEnergy SRL\"), the Italian company which has applied for the Colle Santo gas field concession (with a 90% interest), and has an option to acquire the remaining 80% interest in LNEnergy SRL on or before 1 February 2025 (the \"Option\"), with an exercise price of US$11 million.\nThe Colle Santo gas field is a highly material gas resource with an estimated 65Bcf of 2P reserves1, with two production wells already drilled and flow-tested, making the field development ready. LNEnergy believes that the field has the potential to generate an estimated €11-12m of gross post-tax free cash flow per annum.\nAs at 30 September 2022, LNEnergy reported unaudited net assets of US$746,034. LNEnergy's financial statements for the year ended 30 September 2022 did not include income statement items; however, its management accounts reported a loss for the 15 months ended 31 December 2023 of US$3.1 million and as at 31 December 2023, had net assets of US$888,348.\nStephen Williams, Co-CEO of Reabold, commented:\n\"We are extremely pleased once again to be able to increase our interest in LNEnergy. Through the agreed Warrant, Reabold will be able, at its discretion, to further increase its investment in LNEnergy as the regulatory process for Colle Santo progresses.\n\"The Co...