Reabold Resources plc plans to increase its interest to 17.6% for £250,000 cash in the operator of the Colle Santo gas field.
SECOND OPTION
The company will acquire a further 1.6% in LNEnergy Ltd by subscribing for 18 new ordinary shares each at £13,889, funded from existing cash resources.
As part of the investment, LNEnergy has agreed to appoint Reabold co-chief executive officer Sachin Oza as a board observer.
Reabold still has the second option to acquire a further 127 new ordinary shares for £1,800,000 cash resulting in 26.1% ownership for a total £4.3 million in cash and equity.
LNEnergy’s has an exclusive option over a 90% interest in Colle Santo which holds an estimated 65bcf of 2P reserves, with two production wells already drilled and the field development ready.
“Following the positive permitting progress on the Colle Santo gas field announced last week and the subsequent acceleration of the work programme in Italy, we are delighted to be able to further increase our interest in LNEnergy,” said co-CEO Stephen Williams.
“The 65bcf field is development ready and is expected to generate significant cash flow once on stream, whilst providing crucial domestic energy resource for Italy.”