Reabold Resources PLC (AIM:RBD) has received a £5.2 million cash boost, as Shell made a milestone payment under its November 2022 acquisition deal for Corallian Energy.
A year ago, Reabold received £3.2 million in upfront cash, followed by today’s £5.2 million and a further contingent £4.4 million payment will be due upon the North Sea Transition Authority (NSTA) granting development approval for the Victory gas field – Reabold expects this “within the coming months”.
The cash proceeds are earmarked to fund the development of assets across the Reabold portfolio, including drilling a horizontal well at the West Newton project onshore UK and the acceleration of the work programme at the Colle Santo gas project in Italy.
"We are delighted to receive the second tranche of the payment from Shell,” co-chief executive Stephen Williams said in a statement.
“The sale of the Victory project last year was a significant moment in Reabold's history, proving our strategy to create value for shareholders by identifying, funding and monetising underappreciated but strategically important assets.
“Reabold played a key role in the development of the Victory project, which will be an important asset to the UK as it looks to increase domestic gas supply.”
Williams added: "Now with a strong funding position, we look forward to progressing the other projects in our portfolio whilst also distributing capital to reward shareholders for their ongoing support of Reabold."