Reabold Resources plc has signed a conditional equity exchange agreement with American OTC traded oil and gas operator, Daybreak Oil and Gas Inc, with assets in California.
TRANSACTION
The transaction will see the investment company become a major shareholder of Daybreak through the issue of new Daybreak shares to Reabold.
In exchange, Daybreak will acquire Reabold California LLC, the company subsidiary with licence interests in California.
Reabold California holds interests in three licence areas of Monroe Swell, West Brentwood and Grizzly Island.
EXPERTISE
Co-chief executive Sachin Oza said that the transaction created liquidity for the company and formed a new, cash flow producing business capable of capitalising on growth opportunities.
“Our Californian portfolio has been a significant deliverer for Reabold, with five discoveries over five wells since we began our drilling programme.
“With a dedicated management team with significant in-state expertise now at the helm, we look forward to the next phase of its development as a large shareholder.”