Reabold Resources PLC (AIM:RBD) told investors it has "high graded" its exploration portfolio in the North Sea, prioritising the assets it deems to have “the highest potential return”.
It comes after the explorer captured potential projects through low-cost acquisitions – paying £250,000 for a basket of prospects in the northern North Sea in May 2022 and paying £1mln this January for prospects in the southern North Sea.
Reabold co-chief executive Sachin Oza described “an abundance of value opportunities” in the company’s portfolio.
“The high-grading of our recently acquired North Sea licence portfolio is driven by the board's disciplined financial framework, where the highest return opportunities have been prioritised,” Oza said in a statement.
“We will look to farm down these high-graded assets to help fund the de-risking and value creation process."
The southern North Sea assets include Shell-operated acreage adjacent to the new Pensacola discovery, which is part-owned by AIM-peer Deltic and was separately upgraded today.
Reabold said that the work undertaken on the southern acreage had “provided the company with valuable data and added to our understanding of the Zechstein play” which additionally benefits its view of the company’s onshore projects in northern England, West Newton and Crawberry Hill.
Elsewhere, amongst the northern group of prospects is Dunrobin and Golspie, 36% owned by Reabold, which are together estimated to host a possible 201mln barrels of potential resources.
In addition, the Laxford, Scourie, Oulton and Oulton West licences, which are 100% owned, are estimated at close to 50mln barrels and 163 cubic feet of gas.
Meanwhile, the Curlew-A, Quoys, Unst and Sandvoe have been relinquished or are due to be relinquished shortly.