Reabold Resources PLC (AIM:RBD) is encouraged by recent progress across the junior oil and gas company’s portfolio, co-chief executives Sachin Oza and Stephen Williams jointly said in today’s interim results statement.
“The prospects for LNEnergy have developed rapidly since May 2023, when we re-invested part of the proceeds of the disposal of the Victory asset in the Colle Santo project,” they said.
“The post period end indicative approvals from both the regional and national regulators are key steps to unlocking the material potential of the Colle Santo gas field and to near-term production.
“We also made good progress with UK onshore licence PEDL183 and anticipate commencement of drilling at the well during H1 2024.
“The identification of an existing discovery, Crawberry Hill, also on PEDL183, confirms the significant prospectivity in the licence."
The executives added: “The next 12 months will be exciting for Reabold with anticipated newsflow on our key assets and the expected receipt of the £9.5 million contingent payment from Shell (as the balance of the consideration for the Victory project).
“We will continue with our disciplined strategy to allocate capital to undervalued oil & gas assets where their development benefits from being close to existing infrastructure and there is a clear path to monetisation."
In terms of financials, the company said it had £2.6 million of net cash and it noted that further cash inflows are anticipated from Shell, under the asset sale terms, in the fourth quarter of the year.
The company reported a £3.65 million loss for the six-month period to 30 June 2023, including £895,000 of paper losses largely related to decline in the market value of Daybreak shares held by the company.
It said it spent £1.3 million on exploration in the period, and £1.1 million on administrative expenses.
“Reabold retains a strong balance sheet with no borrowings, limited decommissioning liabilities and cash inflows expected in the fourth quarter of 2023 as part of the contingent consideration receivable arising from the sale of Corallian to Shell,” the company added.
“Receipt of the contingent consideration will allow the company to fund ongoing capital investment programmes as well as seeking new acquisition and investment opportunities.”