Reabold Resources plc has increased its share in Corallian Energy Ltd to 2,780,049 after investing £600,000.
The hydrocarbon investment company exercised 272,727 warrants over shares in Corallian Energy Limited at £2.20 per share, equating to approximately £600,000. Reabold now holds 36.9% of Corallian’s then issued share capital.
In the 32nd Licensing Round, the Oil and Gas Authority (OGA) offered Corallian 100% interests in the Victory gas discovery in block 207/1a, the Laxford gas discovery and Scourie prospects in blocks 214/29c and 214/30c, and the Oulton oil discovery in block 3/11a.
Reabold said it saw Victory as a simple, low-risk gas development located near existing local infrastructure. The company added the field had been fully appraised and needed no additional pre-development drilling.
Corallian aims to submit a development plan for Victory to the OGA by the end of 2021, with first gas production anticipated during Q4 2024. From 2025, a three-year gas production plateau is planned at 70 mmscf/d (11,666 boepd), delivering over 25 BCF gas per year.
Reabold said that the value of the Victory project in the West of Shetland is estimated to be £85 million based on current gas price forecast of 42.5 pence per therm to ca. £146 based on the historical average gas price of 50p/therm. The value to Reabold, based on its 36.9% interest in Corallian, is £31m to £54m.
For the year ended 31 October 2019, Corallian reported a loss of £7,161,415 and at 31 October 2019 net assets of £1,974,480.
Reabold Resources’ portfolio also includes 56% interest in West Newton through its 59% interest in Rathlin Energy; three licence areas in Monroe Swell, West Brentwood and Grizzly Island in California; 51% interest in Danube Petroleum, a 50% owner and operator of the Parta exploration licence in West Romania.
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