Reabold Resources PLC (AIM:RBD) continues to deliver on its strategy, that’s the view of analysts at house broker Cavendish.
Analyst James McCormack highlighted that Reabold aims to identify, invest in and monetise undeveloped gas discoveries with significant resources and near-term production potential.
This was recently supported by Reabold’s move to up its interests in its main assets.
“The company’s two core gas assets are highly material gas resources with the potential to significantly increase energy supply and security in the UK and Italy, respectively,” the analyst said.
McCormack noted that the work programme at West Newton, onshore UK, is expected to begin soon, with the low-cost ‘fully funded’ programme to start in the second half of 2025.
“The aim of the work programme is to establish sustained gas flow and provide proof-of-concept for the West Newton development. The single well development envisages gas production from a single horizontal well processed in a modular plant and tied into the National Transmission System via a 3.5km pipeline,” he highlighted.
Gas production could come just eighteen months after a well's success, he added..
At LNEnergy’s Colle Santo gas field, in Italy, the project is deemed to be “development ready”, and is estimated to host some 65 billion cubic feet of gas (26Bcf net to Reabold).
“It is foreseeable that the Colle Santo gas project could be financed with limited additional capital from Reabold,” McCormack added.
The analyst pointed to LNEnergy estimates that see the field having the potential to generate €11-12 million of gross post-tax cash flow per year.