Reabold Resources PLC (AIM:RBD) said it entered into an investment agreement with LNEnergy Limited.
An initial 3.1% interest in LNEnergy will be purchased by Reabold for £250,000. The oil and gas investment company will also receive options for further shares which could take its stake to 25% with investment totalling £3.8mln.
Under the terms of the agreement, Reabold is committed only to the initial subscription, with the options exercisable at its discretion.
LNEnergy’s primary asset, according to a statement, is an option over a 90% interest in the Colle Santo gas field, onshore Italy.
RPS, an environmental consulting group, rates the project as a "highly material undeveloped" onshore gas resource.
Colle Santo, subject to necessary approvals, is ready to be developed with no additional drilling required.
First gas is targeted for early 2025 and the onshore gas field is "aligned with Reabold’s strategy to help to progress high quality pre-cash flow projects," Reabold said.