LONDON, UK: Reabold Resources plc, an oil & gas investing company, has increased its stake in LNEnergy Limited by 1.6% to 17.6%, with a cash investment of £250,000.
LNEnergy holds an exclusive option over a 90% interest in the Colle Santo gas field, a large gas resource in Italy with two production wells ready and an estimated 65Bcf of 2P reserves.
Reabold still has the option to acquire a further 8.5% interest in LNEnergy by 29 December 2023, which would bring its total shareholding to 26.1%. The Colle Santo gas field is expected to generate €11-12m of gross post-tax free cash flow per annum.
Stephen Williams, Co-CEO of Reabold, commented: “Following the positive permitting progress on the Colle Santo gas field announced last week and the subsequent acceleration of the work programme in Italy, we are delighted to be able to further increase our interest in LNEnergy. The 65Bcf field is development ready and is expected to generate significant cash flow once on stream, whilst providing crucial domestic energy resource for Italy.”