News Oil & Gas

Reabold holds 26.1% in Colle Santo option holder

Reabold Resources plc has invested a further £1,650,000 to increase its holding to 26.1% in the majority owner of the Colle Santo gas field.

COLLABORATION

The company, which signed the original conditional agreement in May 2023, exercised its second option to subscribe for 116 new ordinary shares in LNEnergy Ltd which holds 90% of the field.

Reabold will pay £750,000 in cash from its existing cash resources, and issue 486,486,487 new ordinary shares of 0.1p each in the capital of the company at a price of 0.185 pence per share to LNEnergy to satisfy the remaining £900,000.

Estimated to contain 65bcf of 2P reserves, Colle Santo is ready for development with two production wells already drilled and flow-tested.

Reabold said that the University of Chieti-Pescara had formed a technical scientific committee to work with LNEnergy’s technical and engineering advisors, Italfluid.

The committee will provide third-party support to evaluate data collected in advance and during LNEnergy’s proposed controlled long-term test and monitoring campaign.