Reabold Resources (LON: RBD), the AIM investing company which focusses on investments in pre-cash flow upstream oil and gas projects, has today provided the following update on Corallian Energy Limited.
· Corallian completes an equity fundraise of £1,225,000 at £2.20 per share (the “Round 6 Fundraise”) – a significant premium to Corallian’s previous fundraise which was priced at £1.50 per share
· Reabold increases its equity interest in Corallian to 34.9 per cent.
· Corallian increases its interest in licences in the Wessex Basin, including Colter South, and in the Inner Moray Firth
· Curlew-A progressing to drilling, expected to be H1 2020 subject to completion of a farmout
Corallian has completed an equity fundraise, raising £1,225,000 at £2.20 per share with a new shareholder. Completion of the Round 6 Fundraise has also enabled Corallian to allot the shares related to the Advanced Subscription Agreements that it executed with its existing shareholders in December 2018 and February 2019.
Reabold subscribed for shares under the Advanced Subscription Agreements for £750,000, as announced on 25 February 2019, and for £300,000, as announced on 11 December 2018. Pursuant to the terms of the Advanced Subscriptions, new shares in Corallian were to be allotted at a 30% discount to shares issued in connection with the Round 6 Fundraise. Accordingly, Reabold has been allotted 681,818 new Corallian shares at £1.54 per share, taking the Company’s interest in Corallian to 34.9 per cent. from 32.9 per cent.
A portion of the net proceeds from the Round 6 Fundraise have been utilised by Corallian to acquire Corfe Energy Limited’s interests in licences in which they were a JV partner with Corallian. Such interests comprise four licences in the Wessex Basin, which includes the licence containing Colter South, and the Inner Moray Firth, including three new licences offered in these areas in the 31st Licensing Round. The Pmean Prospective Resources attributable to Corfe’s interests are 10 mmboe* in the Inner Moray Firth and 6 mmboe* in the Wessex Basin. Following this transaction, which completed this week, Corallian’s interest in the Wessex Basin JV licences increases to 74 per cent. and in the Inner Moray Firth JV licences to 45 per cent.
A further portion of these funds have been used by Corallian for the Curlew-A rig site survey, as Reabold announced on 29 July 2019. Reabold notes that Corallian expects the well to be drilled in H1 2020 once the well farmout process has been completed.
Stephen Williams, Co-CEO of Reabold Resources, commented:
“We are very pleased with the equity fundraise carried out by Corallian, representing a significant premium to the price at which Reabold made its investment. Our increased exposure to the Wessex Basin licences, which contain the Colter South Discovery, is a welcome addition that exemplifies the flexibility of the Reabold strategy.”
*Corallian Management Estimates