Reabold Resources PLC (AIM:RBD) has increased its stake in LNEnergy, adding a 1% interest, through a subscription of 17 new ordinary shares.
The £205,000 investment takes Reabold's total holding in LNEnergy to 27.1%.
Reabold has also secured a warrant allowing it to purchase further shares worth around £747,000 - if exercised, it would increase Reabold's ownership of LNEnergy to 30.6%.
LNEnergy has the rights to the Colle Santo gas field concession in Italy, where a development project is set to advance.
"We are extremely pleased once again to be able to increase our interest in LNEnergy,” Reabold co-chief executive Stephen Williams said in a statement.
“Through the agreed Warrant, Reabold will be able, at its discretion, to further increase its investment in LNEnergy as the regulatory process for Colle Santo progresses.”
He added: “The Colle Santo project holds significant gas reserves and can be a valuable source of domestic energy supply for Italy, notably in the form of LNG.
“We remain encouraged by progress through the regulatory process and we look forward to providing a further update to shareholders in due course."
Colle Santo gas field contains some 65 billion cubic feet of 2P gas reserves, and it is described as “development-ready”. Production wells have already been drilled and flow-tested.
LNEnergy estimates that the field could generate €11-12 million in gross post-tax free cash flow annually.
As of the end of 2023, LNEnergy had net assets of US$888,348 but reported a loss of US$3.1 million for the 15 months ending December 2023.
Presently, LNEnergy owns 20% of a vehicle that in turn holds 90% of Colle Santo and it has an option to acquire the other 80% for $11 million on or before 1 February 2025.