Highlights:

• Reabold’s 49.99%-owned subsidiary Corallian has received a non-binding offer from a credible party for the acquisition of all Corallian’s issued share capital.
• The Board of Corallian deems the potential sale as attractive and is advancing negotiations to finalise the deal.
• Reabold has offered to acquire Corallian’s non-Victory licences for a cash consideration of GBP250,000.

Upstream oil & gas investment company Reabold Resources PLC (LON:RBD) has shared an exciting update regarding its 49.99%-owned subsidiary Corallian Energy Ltd.

Corallian Energy has received a non-binding, conditional offer from a credible party for the acquisition of its entire issued share capital. This offer comes as the result of a strategic review of Corallian announced by Reabold last year.

The directors of Corallian consider the offer attractive enough for shareholders that they will progress negotiations with the potential buyer to finalise a sales agreement. 

Corallian operates several oil & gas licences in the United Kingdom.

The non Victory licences include P2493, P2464, P2504, P2396, P24605 and P2478, which contain significant contingent and prospective resources.

Related read: Reabold Resources and Its Strategic Increase in Corallian Stake

Reabold to acquire Corallian's non-Victory licences

As part of the potential sale process, Reabold has entered into a conditional sale and purchase agreement (SPA) to acquire Corallian's working interest in all the non-Victory licences. The portfolio includes six attractive exploration and appraisal licences. For the acquisition, RBD has offered a cash consideration of GBP250,000, payable immediately.

All the non-Victory licences, including P2493, P2464, P2504, P2396, P24605 and P2478 will be acquired under the SPA. Corallian holds a 100% working interest in all the licences except P2478, in which it has a 36% interest.

Data source: Company update, 4 May 2022

After the SPA completion, Reabold intends to become Licence Administrator and look for suitable farm-out opportunities with third-party operators to operate those licences.

The acquisition offer is conditional upon: -

• Corallian receiving notice from the purchaser that the potential sale may proceed to completion, and
• The North Sea Transition Authority provides approval for the acquisition.

Commenting on the acquisition deal, Reabold’s co-Chief Executive Officer, Mr Sachin Oza said, “This is potentially a very exciting transaction for Reabold. 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."

Related read: Reabold (LON:RBD) moving on the right track on West Newton Project