Reabold Resources plc held a strong balance sheet despite recording an increase in losses from its onshore Californian interests.
FINANCES
Half year 2023 results showed group loss of £3.65m (H1 2022: loss of £2.72m) with no revenue generated or costs incurred.
Losses increased mainly from a £1.2 million decline in market value of its Daybreak interest.
Exploration expenses amounted to £1.3m (Nil) while administrative expenses were £1.1m (£700,000) principally for its £2.5m acquisition in LNEnergy.
Reabold said it retained a strong balance sheet with no borrowings, limited decommissioning liabilities.
Net cash totalled £2.6 million as at 30 June 2023 with cash expected in Q4 2023 from the sale of Corallian to Shell.
In April the company began a share buyback for a maximum £750,000 as part of the proposed £4m return to shareholders.
Co-chief executive officers Sachin Oza and Stephen Williams added that the prospects for LNEnergy had developed rapidly since May 2023.
“We also made good progress with UK onshore licence PEDL183 and anticipate commencement of drilling at the well during H1 2024.
“The identification of an existing discovery, Crawberry Hill, also on PEDL183, confirms the significant prospectivity in the licence.
“We will continue with our disciplined strategy to allocate capital to undervalued oil and gas assets where their development benefits from being close to existing infrastructure and there is a clear path to monetisation.”