Reabold conditionally sells Corallian stake for £32m

Reabold Resources plc has conditionally sold its 49.99% stake in Corallian Energy and its Victory gas field to an oil and gas major for £32 million.

TERMS

The company’s net share will be £12.7m, representing a “significant uplift” on its investment of £7.5m in Corallian since late 2017.

Reabold will use the proceeds for its other existing oil and gas assets including drilling the first onshore development well at West Newton planned for H1 2023.

Corallian has notified its shareholders that it had received a conditional offer of £3.20 per Corallian share.

Reabold will acquire for £250,000 Corallian‘s remaining North Sea licences which have prospects near existing oil and gas infrastructure.

POTENTIAL

Co-chief executive Stephen Williams said that the company would continue to identify, fund, and monetise low-risk, under-valued and strategically important oil and gas assets near existing infrastructure.

“We also recognise our role of improving the UK’s energy security, by unlocking the potential of currently under appreciated assets.”