News Oil & Gas

Reabold considers early return from Corallian sale

Reabold Resources plc is considering an early distribution to shareholders following receipt of an initial £10 million, with £3.2m net to Reabold, from the sale of Corallian Energy Ltd to Shell UK Ltd.

PARTIAL DISTRIBUTION

The balance of the total £22m consideration (£9.5 million net to Reabold), is expected to be paid during 2023.

At the end of October 2022 , the company said it would distribute some of the net proceeds to shareholders upon receipt of the second tranche of funds from Shell.

“The board has been actively considering the legal mechanisms available to the company for the intended distribution,” said Reabold in a statement today. 

“The board has also been considering its ability to make an earlier partial distribution having regard to the company’s existing cash balance and its available distributable reserves.”

Reabold will hold a general meeting on 28 February for shareholders to approve the proposed authority to buy back ordinary shares, capital reduction and adoption of the new articles of the company.