Reabold Resources said it agreed terms for the conditional sale of its 49.99% stake in Corallian Energy and its Victory gas field for a gross consideration of £32mln.
Corallian received a conditional offer of £3.20 a share, which Reabold will accept with outstanding convertible loans also to be swapped into shares that will be sold on the same terms.
Reabold's share is a net £12.7mln. which it said represents a significant uplift on its £7.5mln investment in Corallian and the Victory licence since late 2017.
Corallian’s other North Sea licences will be acquired by Reabold for £250,000.
Proceeds from the sale will be used to accelerate other developments including the drilling of the first well at West Newton, which is planned for the first half of 2023.
"The board is delighted with the value uplift and improved financial position this transaction brings to Reabold," Stephen Williams, Co-CEO of Reabold, said.
“There remains tremendous potential to drive further value for shareholders through recycling the Corallian proceeds across the portfolio, initially focussed on West Newton's first development well in 2023."
Victory is located West of Shetland on the UK Continental Shelf.