Reabold Resources PLC (AIM:RBD) co-chief executives Sachin Oza and Stephen Williams jointly told investors in today’s interim results statement that the UK oil and gas junior has confidence in the value creation opportunities that lie ahead.
Their comment comes as the results recap the period prior to Reabold’s asset divestment deal in which an undisclosed oil and gas major agreed to acquire the 49%-owned Victory field development project and before it struck a deal to acquire a stake in a North Sea exploration deal.
Also this week, Reabold’s West Newton project, onshore UK, was boosted by a new competent person's report {CPR) which confirmed its sizeable potential.
"We made good progress in the first half of 2022 and have confidence in the value creation opportunities that lie ahead for Reabold and its shareholders,” Oza and Williams said in the statement.
“The impending monetisation of the Victory asset is a major milestone for us.
“The sale has demonstrated the cycle of our investment strategy, attracting an oil & gas major to acquire the asset we identified at the early stage of development as low-risk, under-valued and strategically important. The transaction also provides us with greater financial capacity to fund development and subsequent value realisation in our other investments, primarily the excellent prospect of West Newton in the near-term.”
The executive directors added: “Reabold has continued to invest in the development of new UK hydrocarbon resources, acquiring six new North Sea licences from Corallian, and agreeing to acquire interests in another four North Sea licences via the transaction to buy Simwell Resources post period end.
“We recognise the important role we can take in contributing to the security and affordability of the UK's energy supplies.”
Reabold ended the period to June 30 2022 with £3.5mln of cash and equivalents. It reported a £2.71mln loss before tax.
Net sales volumes for the year totalled 7,628 barrels oil equivalent, related to Californian assets which were exchanged in a deal back in May.