Reabold Resources plc expects the second tranche payment from the sale of its investee company Corallian Energy Ltd to be distributed to former Corallian shareholders from today.
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Reabold will receive £5.2m from purchaser Shell UK Ltd, which follows the first sum of £3.2m received on 1 November 2022.
The final payment, of £4.4m, is due when the North Sea Transition Authority grants approval for development of the Victory gas field northwest of Shetland, “anticipated within the coming months”.
Reabold intends to use the proceeds to drill the key horizontal well at the West Newton joint venture, accelerate the Colle Santo gas project in Italy and distribute excess cash to shareholders.
The company said that Shell had committed to continue development of the Victory project.
Co-chief executive officer Stephen Williams added: “The sale of the Victory project last year was a significant moment in Reabold’s history, proving our strategy to create value for shareholders by identifying, funding and monetising under-appreciated but strategically important assets.
“Reabold played a key role in the development of the Victory project, which will be an important asset to the UK as it looks to increase domestic gas supply.
“Now with a strong funding position, we look forward to progressing the other projects in our portfolio whilst also distributing capital to reward shareholders for their ongoing support of Reabold.”