Reabold Resources PLC (AIM:RBD) has agreed a deal to simplify the ownership of LN Energy, the vehicle that holds its interest in the Colle Santo gas project, in Italy.
The LN Energy Ltd entity has signed a binding agreement to acquire the remaining share capital of LNEnergy Srl, which holds a 90% interest in Colle Santo.
LN Energy Ltd, which is 29.2% owned by Reabold, at present holds a 20% stake in the Italian vehicle.
Through the proposed transaction, LN Energy will make a number of staged payments starting with $100,000 paid on completion, followed by $400,000 when a development plan is approved, and later $10.5 million upon receipt of a concession decree.
The seller will also receive a 4% net profit interest.
"We are very pleased to have simplified the structure of LNEnergy as it relates to its interest in Colle Santo,” Reabold co-CEO Stephen Williams said.
“This project holds significant gas reserves, at a time when there is an increased focus on the energy transition and energy security in Europe.”
Colle Santo update
In terms of the project itself, Reabold told investors that the VIA Commission, of the Ministry of the Environment of Italy, has now completed a site visit at Colle Santo.
This follows the submission of the Environmental Impact Study for the proposed small-scale LNG development.
"We remain encouraged by the regulatory process to date and we look forward to receiving the VIA Commission approval for the development of the Colle Santo project, the final milestone ahead of a full production concession being granted,” Williams added.
"LNG is a transition fuel which has a central role to play in Italy's energy transition plan, and the strong environmental credentials of the Colle Santo project underline its potential to directly enhance the energy transition, and energy security, in the near term.”