Reabold Resources PLC (AIM:RBD) stakebuilding at LNEnergy is another example of the oil and gas firm’s strategy in action, according to finncap Group PLC (AIM:FCAP).
Increasing its holding to 16.2% in the Italian gas developer, Reabold is “fulfilling its ambition of funding stranded, low risk, near term project with a clear route to cash generation” according to the capital market group.
“The primary asset of LNEnergy is an option over a 90% interest in the 65bcf Colle Santo gas field,” the analysts added.
This site is believed to be one of Europe’s largest undeveloped onshore gas resources, with two flow-tested wells meaning there is no need for additional drilling.
FinnCap said: “Reabold’s investment will support the development engineering and approvals process prior to project financing, with the first gas targeted for early 2025.”
In early May, the two firms entered into an agreement allowing Reabold to increase its stake in LNEnergy to as much as 25%.
FinnCap target a 1.2p price tag for the stock, around a 740% upside to the current 0.14p share value.