Reabold increases interest in Colle Santo

Reabold Resources plc has increased is shareholding to 18.4% in majority option holder, LNEnergy Ltd, of the Colle Santo gas field in Abruzzo, Italy.

FINANCING

The company partially exercised its second option by subscribing for a further 11 new ordinary shares in LNEnergy, equivalent to 0.8%, for £150,000 cash.

Reabold retains the right to invest a further £1,650,000 under the second option, which would result in a 26.1% interest in the enlarged share capital of LNEnergy.

LNEnergy has an exclusive option over a 90% interest in Colle Santo which has an RPS estimated 65bcf of 2P reserves and two production wells drilled and flow-tested, making the field “development ready”.

Reabold’s payment will be used to accelerate the work programme at the gas project.

Co-chief executive officer Sachin Oza said: “We are delighted once again to be able to further increase our interest in LNEnergy, and therefore our exposure to the Colle Santo gas project.

“Colle Santo holds significant gas reserves and can be a valuable source of domestic energy supply for Italy.

“We are pleased with the progress that has been made so far, including the recent letter of intent signed between LNEnergy and the Italian EPC company to provide vendor financing for the project, thereby substantially reducing the upfront capex for the development.”

Reabold has been steadily increasing its interest in LNEnergy since entering the deal in May.

In September, the Abruzzo regional government indicated its intention to approve an early production programme.