LONDON: Beacon Energy plc (AIM: BCE) said Tuesday it has signed a binding, conditional share purchase agreement with Reabold Resources plc to acquire a significant stake in LNEnergy Limited, marking a strategic entry into Italy’s onshore gas sector.
The proposed transaction, classified as a reverse takeover under AIM rules, will give Beacon Energy up to a 48% indirect interest in LNEnergy, which holds the Colle Santo gas project in the Abruzzo region. The field has 2P reserves of 65 billion cubic feet, equivalent to approximately 11 million barrels of oil equivalent.
Beacon Energy will initially acquire 49% of a special purpose vehicle holding the LNEnergy stake, with a second tranche contingent on regulatory approvals, including a production concession expected by mid-2026. Completion of the first acquisition is anticipated in November.
“This strategic investment in LNEnergy and the Colle Santo project marks a pivotal moment for Beacon Energy,” CEO Stewart MacDonald said. “It aligns with our growth strategy and provides a strong foundation for future expansion.”
To fund the transaction and advance the Colle Santo project toward final investment decision and first gas by the second half of 2027, Beacon plans to raise £3.5 million through a placing. Reabold will invest £750,000 and receive new shares equal to 29% of Beacon’s enlarged capital, including consideration and placing shares.
Reabold will also be eligible for contingent earn-out payments capped at €16.17 million, based on future free cash flow from LNEnergy.
Beacon’s shares remain suspended from trading on AIM pending completion of the transaction and publication of an admission document. The company has been classified as a cash shell for more than six months.
The Colle Santo project is supported by Italfluid, a major contractor with a strong health, safety and environmental record. Beacon said the investment positions it in a region with long-term growth potential and attractive project economics, including an estimated NPV10 of €50 million.