Reabold Resources PLC (AIM:RBD) said it is now "financially well positioned" to progress its two key assets following the payment of a final tranche of cash for the Victory gas project.
The Anglo-Dutch paid £32 million for the North Sea assets, of which £12.7 million went to Reabold. It now has net cash of £9.7 million, which will be reinvested into gas developments at West Newton, in the UK, and Colle Santo in Italy.
At West Newton, the company reconfirmed that drilling of the WN-A3 well will take place this year alongside the existing WN-A1 discovery sometime this year.
This operation aims to explore the Kirkham Abbey formation, previously identified to contain a 27-metre gas column and assess the potential of a deeper Permian Rotliegend Sandstone target.
The revised and cost-effective drilling plan for WN-A3, designed as a directional, high-angle well, is set to reduce expenses significantly compared to the initial horizontal drilling approach.
"We are excited by the new phased capex plan at West Newton which could see production and cash flow much sooner than previously expected, and with considerably reduced initial capital investment," said CEO Stephen Newton.
"We anticipate a funding solution for the drilling of WN-A3 being finalised in the near future, and this first development well being drilled this year."
In Italy, Reabold, through its 26.1% equity ownership in LNEnergy, is gearing up for the development of the Colle Santo gas field.
With 65bcf of 2P reserves and requiring no additional drilling for commencement, the project represents a highly material gas resource.
The field's development plan has strong environmental credentials, including CO2 capture and hydrogen production, aligning with Italy's energy security and environmental priorities.
"We are also encouraged by progress in the approval process at Colle Santo and look forward to updating shareholders with further updates in due course," said CEO Williams.