14th Jun 2018 13:34
LONDON (Alliance News) - Reabold Resources PLC on Thursday said it intends to buy Irish engineering company Gaelic Resources Ltd for GBP3.1 million in shares.
The oil & gas company will issue 420.0 million shares at a price of 0.73 pence each. The stock was trading 0.1% higher at 0.70p per share on the day Thursday.
The acquisition will provide Reabold with options to participate in multiple near-term, high-impact oil & gas leases in the US. The leases are operated by Californian company Integrity Management Solutions, which runs the five-well drilling programme. Reabold anticipates costs to total USD7 million for the five wells.
The company expects to drill first two West Brentwood and Monroe Swell wells in the third quarter of 2018. In a success case, these wells will be put onto production, providing cashflow for further drilling activity.
"We are extremely excited to be drilling these high-impact opportunities in California," said co-Chief Executive Stephen Williams.
"Using Reabold shares to fund the acquisition of Gaelic allows us to preserve cash that can be used for drilling activity, which enhances near-term value-creation," Williams added.
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