Reabold Resources plc said its investors can expect payouts following completion of the sale of its investee company Corallian Energy Ltd to Shell UK Ltd.
CONSIDERATION
The company expects that payment of the initial gross consideration of £10 million (c. £3.2m net to Reabold) will be made to Corallian shareholders (including Reabold) over the coming days.
The balance of the total consideration, £22m (c. £9.5m net to Reabold), is expected to be made in 2023.
The company also intends to make a distribution of £4m excess cash to its shareholders on receipt of the £9.5m.
USES
Reabold intends to use net proceeds to develop its existing assets, including drilling the key horizontal well at West Newton, and assess potential further acquisitions.