LONDON, UK: Reabold Resources notified that Shell and Corallian Energy have executed a Sale and Purchase Agreement (SPA) for the conditional purchase of the entire issued share capital of Corallian Energy by Shell. Corallian Energy is a private UK oil and gas company.

Reabold Resources intends to use the net proceeds received to advance development of its existing assets, including West Newton, and assess potential further acquisition opportunities.

At the time of completion of the purchase of the entire issued share capital of Corallian by Shell, Corallian’s only asset will be licence P2596, which contains the Victory gas development opportunity.

Corallian expects that completion of the SPA and, therefore, the initial gross consideration payment of £10 million (c. £3.2 million net to Reabold), will take place during Q4 of 2022.

Stephen Williams, Co-CEO of Reabold, commented: “We are very pleased that Shell has acquired Corallian, and therefore the Victory asset. We believe such a transaction validates Reabold’s strategy of creating value for shareholders by identifying, funding and monetising underappreciated, strategically important assets. The net proceeds to be received will provide Reabold with improved financial flexibility to consider further acquisition opportunities and develop its existing assets. In addition, we believe this transaction will result in the production of indigenous natural gas resources that will enhance the UK’s energy security position.”

Reabold Resources plc is an investing company investing in the exploration and production (“E&P”) sector and has a diversified portfolio of assets in upstream oil & gas projects. Reabold aims to create value from each project by investing in undervalued, low-risk, near-term projects and by identifying a clear exit plan prior to investment. The Company’s investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world.

Reabold’s long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.

Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company’s strategy.

The Company holds an interest in Licence P2596, West of Shetland. The licence was offered in 32nd Round. Block 207/1a contains the Victory gas discovery which Corallian considers to be a fully appraised commercially attractive gas discovery requiring sub-sea development tie back for production.

The Company takes its name from The Corallian Group which consists of interbedded marine limestones (including oolites), mudstones and sandstones of Late Jurassic Oxfordian age, occurring up to 100 metres thickness between Dorset and Oxfordshire and also in North Yorkshire.