Reabold Resources plc’s investee in the Colle Santo onshore gas project has entered into a binding agreement to acquire the outstanding 80% issued share capital of the field’s owner.
PRODUCTION
LN Energy Ltd (LN) manages and owns a 20% interest in Italian company LNEnergy S.R.L. which holds 90% of the concession, with an estimated 65 billion cubic feet of 2P reserves, in the Abruzzo region.
LN has an option to acquire the remaining 80% interest in LNE Srl on or before 1 April 2025 for US$11 million.
Reabold said that LN will pay $100,000 to LNE Srl on completion of the agreement.
Subsequent payments totalling $10.9m are subject to regulatory approval of a development plan and a concession decree award.
From production, LNE Srl will receive a 4% net profits interest of the liquefied natural gas project.
The VIA Commission of the Ministry of the Environment of Italy has made a site visit to Colle Santo.
LN is due to provide further information to the VIA Commission which will then issue its decision.
“We are very pleased to have simplified the structure of LNEnergy as it relates to its interest in Colle Santo,” added Reabold co-chief executive officer Stephen Williams.
“This project holds significant gas reserves, at a time when there is an increased focus on the energy transition and energy security in Europe.
“We remain encouraged by the regulatory process to date and we look forward to receiving the VIA Commission approval for the development of the Colle Santo project, the final milestone ahead of a full production concession being granted.”
As at October 2024 Reabold held a 29.2% interest in LN.
In December 2024 Reabold’s co-CEO Sachin Oza became a director of LN, joining Steven Frascogna and Robert Brooks Price.
Previous director Girolamo Mazziotta resigned as director in June 2022.