Reabold Resources PLC (AIM:RBD) told investors it has restarted a share buyback programme, using cash received recently from Shell PLC (LSE:SHEL, NYSE:SHEL).
It comes after Reabold’s Victory Field asset sale in October 2022 at which time management pledged a partial return of capital to shareholders.
Today, it confirms that it will now buy back around £593,846 worth of its own shares – adding to around £156,000 that has been returned to shareholders to date.
Reabold received a £5.2 million payment of deferred consideration from Shell following the Victory sale.
In a statement, the company said: “Reabold's board evaluates many investment opportunities consistent with its investing policy and believes that the current market value of the company's ordinary shares makes the buyback an appropriate use of capital.
“The maximum quantum of the programme has been set by the board after having considered the current capital position and future capital needs of the company, such that it retains financial flexibility whilst maintaining an efficient balance sheet.
“The board will keep the programme under review to ensure that it continues as an efficient and effective means of generating value for Reabold shareholders.”
Additionally, Reabold noted that the buyback programme will continue until at least the company’s general meeting, which will be held on 10 January 2024, at which point it will be reviewed.