3rd Dec 2018 10:07
LONDON (Alliance News) - Reabold Resources PLC on Monday said it plans to begin a dual-target appraisal well in the first half of 2019 as it now that it holds a 37.1% stake in Rathlin Energy UK Ltd.
For 2017, Rathlin recorded a loss after tax of GBP1.3 million and reported net liabilities of GBP30 million.
Reabold said its GBP3.0 million investment in Rathlin had been conditional upon Connaught Oil & Gas Ltd agreeing to settle a liability of GBP33.8 million owed to it by Rathlin, and Rathlin retaining a 66.7% equity interest in licence PEDL183. This now has been satisfied.
PEDL183 is a petroleum exploration & development licence, covering Crawberry Hill and West Newton well sites, located in East Riding, Yorkshire.
In the West Newton, Reabold and Rathlin plan an appraisal well for the first half of 2019. The well is expected to test two targets, comprising of Kirkham Abbey Formation gas discovery and Cadeby Formation reef flank oil prospect.
Reabold said it expects West Newton to bring near-term operational activity and, in a success case, offer a fast pathway to monetisation through its proximity to existing gas pipelines and infrastructure.
In addition, the London-listed company said Co-Chief Executive Officer Stephen Williams will be appointed to the board of Rathlin. Reabold has the right to appoint a director to the Rathlin board as long as it continues to hold an interest of more than 15%. The other co-CEO is Sachin Oza.
"Sachin and I are delighted to have successfully completed our investment in Rathlin. We view this as a highly opportune moment to invest in this premier UK onshore opportunity," said Williams.
"With a dual-target appraisal well planned to begin in the first half of 2019, we look forward to working closely with Rathlin and updating shareholders as further operational progress is completed over the coming months," added Williams.
Separately, Reabold Resources said it has exercised options to subscribe for 375,940 shares in Danube Petroleum Ltd at a price of 100 pence per share, worth GBP375,940.
Reabold Resources said it funded the investment from its existing cash resources and now holds a 33% stake in Danube, having previously held a 29% interest.
ADX Energy Ltd holds the remaining 67% stake in Danube.
The additional funding will be used by Danube for the drilling of the Parta appraisal wells, located in Romania, in the first quarter of 2019.
At the end of September, Reabold Resources completed the second tranche of GBP1.1 million financing to fund the first appraisal well.
Reabold Resources shares were trading 7.4% higher on Monday at 0.73 pence each.
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