Reabold Resources ‘stranded project’ monetisation and reinvestment strategy has started to bear significant fruit, says house broker finnCap.
Cash from the successful sale of Corallian to Shell is rejuvenating the product portfolio and funding a buyback programme.
UK onshore field West Newton’s horizontal development drilling in the fourth quarter of 2023 is a key catalyst, which might require some cash to be injected into subsidiary Raithlin, the operator.
“The shares have pulled back over 25% in the past month on the back of an aggressive seller rather than any fundamental issues, creating an attractive entry point ahead of this low-risk, high-reward drilling event,” finnCap concludes.
The broker’s target price is 1.2p compares to 0.14p in the market.