Sponsored

Reabold’s (LON:RBD) subsidiary Corallian receives acquisition offer

May 11, 2022 01:43 AM BST | By Nitish Kumar
Follow us on Google News: https://kalkinemedia.com/resources/assets/public/images/google-news.webp

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  


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

AI on the Rise: A Look at Top AI Companies and Their Stocks

Recent Articles

Investing Tips

Previous Next