Reabold Resources plc has increased its oil and gas interests with the conditional acquisition of Simwell Resources Ltd.
LICENCES
The company signed a sales and purchase agreement (SPA) for a total initial consideration, plus repayment of all outstanding creditors/liabilities, of £1 million in part shares-part cash.
Reabold said that the deal would substantially increase its footprint in the emerging Zechstein trend, with a number of prospects covered with high quality 3D seismic data.
Simwell holds minority interests in four UK licences in the Southern North Sea with partners Shell UK Ltd, Horizon Energy Partners Ltd and Ardent Oil Ltd.
Shell acquired a 640 km2 3D seismic survey over licence P2332 in August 2019, funding Simwell’s 30% share.
The survey also covered parts of the adjacent licence P2252, containing the Pensacola prospect.
Deltic Energy plc has said the prospect holds a P50 gross prospective resources of 309 bcf and is planned to be drilled in Q4 of 2022.
“Simwell believe that success at Pensacola would derisk a number of similar prospects in P2332,” said Reabold in a statement.
“Shell will continue to fund 100% of the licence costs until a drilling election is made.”
During 2019, a 3D seismic survey identified several prospects over licences P2329, P2427 and P2486 (each 10%).
TERMS
Reabold will pay £361,840.93 with 134,105,159 shares at 0.27 pence.
The company will pay a further £305,157.71 with 113,021,374 new ordinary shares and £333,001.36 in cash to certain Simwell creditors.
There will be a contingent deferred consideration of £150,000 paid in shares, on a commitment to drill P2332.
Parties involved must meet the conditions of the transaction, including approval from the North Sea Transition Authority, within 12 months of the date of the SPA or the deal terminates.
OFFSHORE
“We are delighted to be able to acquire this set of highly prospective assets at a compelling valuation,” added Reabold’s co-chief executive Stephen Williams.
“This extends our significant position in the emerging Zechstein play into the offshore, and at an exciting time for the play ahead of the drilling of Pensacola.”