Reabold Resources plc has conditionally acquired six exploration and appraisal licences for £250,000 from Corallian Energy Ltd, which is itself under offer for a potential sale.
CORALLIAN ENERGY LTD
Private UK oil and gas company Corallian has interests in the West of Shetland, Central Graben, Inner Moray Firth and Viking Graben basins
Upstream oil & gas investment company Reabold, a 49.99% shareholder in Corallian, said that Corallian had received a non-binding offer from “a credible party” for a potential sale.
“The board of Corallian is progressing negotiations with the potential purchaser, including the purchaser finalising its due diligence process.
“The Corallian board of directors currently considers the offer sufficiently attractive for all shareholders to commence a sale process.”
LICENCES
As part of the potential sale process, Reabold has signed a conditional sale and purchase agreement (SPA) to acquire Corallian’s working interest in all the non-Victory licences.
P2605 (100%) lies West of Shetland, northwest of the Victory licence (P2596) and contains the Laxford gas discovery, and the Scourie prospect.
P2478 (36%) is in the Inner Moray Firth and contains the Dunrobin prospect which is located in shallow water with expected low drilling costs.
P2464 (100%) is in the Shetland Basin and contains the Unst gas prospect and the Quoys prospect.
P2504 (100%) is adjacent to licence P2464 in the East Shetland Basin and contains the Oulton oil discovery and the Oulton West prospect.
On completion of the licence acquisition and potential sale, Corallian’s only remaining asset will be licence P2596 containing the Victory gas development opportunity.
FARM-OUT
As administrator, Reabold said it would look to farm out the newly acquired licences with third-party operators.
“This is potentially a very exciting transaction for Reabold,” added co-chief executive Sachin Oza.
“As part of the Corallian strategic review, which has reached the stage of a non-binding, conditional offer for Corallian based on its Victory asset, we have agreed to acquire six licences from Corallian.
“Four of the licences, in particular, have significant prospective potential in addition to the de-risked contingent resources associated with Oulton, which we believe, can be progressed in a low-cost manner given, inter alia, the low spending commitments.”