Reabold Resources Plc (LON:RBD) has dealt into an offshore drilling project, off England’s south coast, which is expected to see a well in the first half of 2018.
The company is to invest £1.5mln into Corallian Energy for a 35.4% stake in the privately owned UK oil firm.
WATCH: Reabold takes sizeable stake in UK offshore drilling project
Corallian holds five licence interests in the UK, including a 60% in Colter exploration prospect which is located offshore in close proximity to Wytch Farm, Britain’s largest oil field which has so far produced some 450mln barrels of crude.
Colter up-dip could contain as much as 30mln barrels of oil
Colter was confirmed as containing oil with a British Petroleum (BP) well back in 1986, and by using contemporary seismic technologies a new area of interest has now been identified in an ‘up-dip’ location.
It is estimated, by Corallian, that Colter could contain around 30mln barrels of recoverable oil and the success case has been estimated to be worth some £255mln.
New appointments
The deal follows the appointment of joint chief executives Sachin Oza and Stephen Williams to Reabold in October.
Reabold’s new bosses, in the statement’s joint-comment, said: "We are delighted that the first project since joining Reabold is something as exciting and impactful as Corallian's five UK licence interests and in particular, the Colter appraisal well.
“We look forward to continuing to work closely with the Corallian team.
“This is an excellent time to put capital to work in high quality oil & gas projects, and we continue to assess a number of opportunities.”
Shares were down 6.7% to 0.84p on Wednesday afternoon.
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