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Oil & Gas

Reabold Resources “remains confident” as Italian gas venture advances

Reabold Resources PLC (AIM:RBD) management told investors it remains confident it can ensure that the full potential and value of its portfolio can be delivered to shareholders.

The company, in today’s audited financial results statement for 2023, highlighted it has continued to focus on developing strategic gas projects for European energy security.

In 2023, Reabold acquired a 26.1% interest in LNEnergy Limited for a total consideration of £4.3 million. LNEnergy's primary asset is an exclusive option over a 90% interest in the Colle Santo gas field, in Italy, where it has an estimated 65bcf of 2P reserves.

The financial results confirmed a robust cash position, £5.4 million of cash and net assets of £42.2 million at the end of the year.

Reabold, meanwhile, received £5.2 million of cash during the financial year from the second tranche proceeds of the Corallian sale, and it returned £263,000 to shareholders through share buybacks, with a further £75,000 returned post-period-end.

A further £4.4 million, the final tranche of Corallian proceeds, was received in the current financial year.

Operationally, the attention was on a gas export feasibility study at West Newton, with the study concluding that an initial single well development and gas export plan can accelerate production and cash flow with limited capital expenditure.

Also, Reabold has executed a non-binding heads of agreement with commodities trader Gunvor International which is now slated to buy LNG produced from the Colle Santo gas field.

LNEnergy is working to secure all necessary permits for the project with production targeted for 2025.

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