Reabold Resources PLC (AIM:RBD) confirmed to investors that the process to potentially acquire exploration and appraisal licences from Corallian Energy is continuing.
The company, in a statement, noted that negotiations are continuing.
Reabold previously entered into a conditional agreement in which 49.99%-owned associate Corallian Energy would be sold and at the same time, Reabold would acquire six of Corallian’s exploration and appraisal licences for £250,000.
It would represent a divestment of Reabold’s interests in the Victory gas field development and concurrently an expansion of its directly owned exploration and appraisal portfolio.
A clause in the agreements gave parties on both sides of the potential deal an opportunity to end talks after 31 August but Reabold today confirmed that neither side intends to terminate the agreement.
Reabold, meanwhile, told investors that it expects to provide a further update in due course.
In May, the company revealed the approach from what was described as a credible bidder.
Corallian’s board have indicated they consider the offer attractive and have started talks with the potential purchaser over a sale.
The licences being acquired are primarily in the Moray Firth and East of Shetland regions and contain the Laxford gas field, the Scourie, Dunrobin and Unst prospects and the Oulton oil discovery.
“Four of the licences, in particular, have significant prospective potential in addition to the de-risked contingent resources associated with Oulton, which we believe, can be progressed in a low-cost manner given, inter alia, the low spending commitments,” Reabold’s Sachin Oza said in May.