Reabold Resources PLC (AIM:RBD) has further increased its interest in LNEnergy Limited, to 26.1%, via a £1.65 million investment.
It is paying £750,000 in cash and issuing 486.48 million in shares, priced at 0.185p each.
The transaction comes as LNEnergy is progressing with its primary asset, a 90% stake in the Colle Santo gas field.
Today, Reabold noted that a technical-scientific committee has been set up at the University of Chieti-Pescara, of the Region of Abruzzo, in support of the development of Colle Santo.
This group will work in collaboration with LNEnergy's technical and engineering advisors as third-party expert support – in particular with data evaluation ahead of and during a proposed long-term test and monitoring campaign.
"Reabold is excited by the potential of the Colle Santo project and confident in its decision to invest further in LNEnergy,” co-chief executive Sachin Oza said in a statement.
“The formalisation of the Technical Scientific Committee at the University of Chieti-Pescara shows constructive local stakeholder engagement in the Colle Santo project and follows on from positive regulatory progress taking place at a government level, as Italy looks to secure domestic energy supply.
“We look forward to updating shareholders on our progress in Italy as we develop this important regional project."
Colle Santo is estimated to host some 65 billion cubic feet of gas reserves, it has two production wells already drilled and tested. It is deemed to be ‘development ready’.
According to LNEnergy estimates it can generate €11 million to €12 million of gross post-tax free cash flow per year.