Reabold’s update on its PEDL 183 UK onshore licence last week, revealing a new potentially significant discovery (Crawberry Hill), might add materially to its valuation if firmed up, according to house broker finnCap.
The oiler made the announcement alongside a CPR covering four North Sea licences earmarked for a farm-out.
“Updating our risked NAV for the contingent and prospective resources disclosed in the CPR only raises our valuation by 3%, to 1.24p/sh, as we heavily risk these early-stage opportunities,” said the broker.
“However, this valuation does not include anything yet for the overlooked Crawberry Hill discovery, which could add materially to our valuation as more details emerge."
Shares currently trade at 0.19p.