Reabold Resources PLC (AIM:RBD) told investors it has made a further investment in LNEnergy, increasing its stake to 17.6% from 16%.
The company, in a stock market statement, said it will pay £250,000 in cash for the additional stake in LNEnergy which owns a 90% interest in the Colle Santo gas field in Italy.
It retains an option agreement allowing the company to increase its interest in LNEnergy to 26.1% for £1.8 million in cash (which if exercised would’ve seen a total investment of £4.3 million).
The Colle Santo gas field is a highly material gas resource, Reabold highlighted, with an estimated 65 billion cubic feet of gas reserves. Two wells are already in place and the field is deemed ‘development ready’.
Once up and running, Reabold says the field has the potential to generate up to €12 million of free cash flow.
Earlier this month, the project moved into the operational phase after receiving communication from the Italian authorities that the project with be given the greenlight for ‘early production’.