31st Jul 2019 16:14
(Alliance News) - Oil & gas projects investor Reabold Resources PLC said on Wednesday that investee Corallian Energy Ltd raised GBP1.2 million through an equity fundraise to fund the acquisition of licenses from a joint-venture partner.
Corallian sold 556.8 million shares at a price of 220.00 pence each, a 47% premium to its previous round of fundraising of 150.00p per share.
A portion of the proceeds will be used to finance Corallian's acquisition of four licences in the Wessex Basin from joint-venture partners Corfe Energy Ltd. Following the transaction, Corallian has a 74% interest in the Wessex Basin licenses.
Some of the funds will be used to finance the rig-site survey of the Curlew-A prospect in the central North Sea.
Reabold also said that it was allotted 681,818 Corallian shares at 154.00p each, a 30% discount to the share price during the fundraise. Reabold now has a 35% stake in Corallian, up from 33%.
Chief Executive Stephen Williams said: "We are very pleased with the equity fundraise carried out by Corallian, representing a significant premium to the price at which Reabold made its investment. Our increased exposure to the Wessex Basin licences, which contain the Colter South Discovery, is a welcome addition that exemplifies the flexibility of the Reabold strategy."
Shares in Reabold Resources were up 0.3% at 1.18 pence each in London on Wednesday afternoon.
Related Shares:
Reabold Resources