Reabold Resources PLC (AIM:RBD) has reported an extension to the option period for LNEnergy’s acquisition of the Colle Santo gas project.
Adding two months, the new deadline for a deal in now 1 April.
Reabold holds a 29.2% stake in LNEnergy which is the operator of Colle Santo, and in turn currently owns 20% of the Italian field with an option to buy-out the other 80% for $11 million.
Colle Santo is host to some 65 billion cubic feet (Bcf) of 2P gas reserves, it already has two drilled and flow-tested wells – meaning it is deemed to be a ‘development-ready’ project.
LNEnergy anticipates the field could generate €11-12 million in gross free cash flow per year.