Reabold Resources plc has increased its interest in the Colle Santo onshore gas field by taking a further stake in part owner LNEnergy Ltd.
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The company subscribed for 17 new ordinary shares each at a price of £12,047, equivalent of 1%, in LNEnergy for £205,000.
Reabold has been increasing its interest in Colle Santo since its first investment in May 2023 and now holds approximately 27.1% of LNEnergy’s enlarged share capital.
LNEnergy has also agreed to grant Reabold a six-month warrant to subscribe in cash for a further £747,000 of new ordinary shares at a price of £12,047 per share.
If exercised, the warrant would take Reabold’s shareholding to approximately 30.6%.
LNEnergy manages and owns a 20% interest in Italian company LNEnergy S.R.L., which has applied for the Colle Santo concession, with a 90% interest.
LNEnergy has an option to acquire the remaining 80% interest in LNEnergy SRL on or before 1 February 2025 for US$11 million.
Reabold said that the field contained an estimated 65Bcf of 2P reserves with two production wells already drilled and flow-tested.
“We are extremely pleased once again to be able to increase our interest in LNEnergy,” added co-chief executive Stephen Williams.
“The Colle Santo project holds significant gas reserves and can be a valuable source of domestic energy supply for Italy, notably in the form of LNG.
“We remain encouraged by progress through the regulatory process and we look forward to providing a further update to shareholders in due course.”