Reabold gets £5.2m second payment for Corallian sale

5th Dec 2023 15:02

(Sharecast News) - Oil and gas investor Reabold Resources announced the next tranche of payment from Shell UK for the sale of Corallian Energy in November last year.

The AIM-traded firm said the second tranche, totalling £5.2m, would supplement the £3.2m it received on 1 November 2022.

It added that a final consideration payment of £4.4m was expected to be received on the granting of development approval for the Victory gas field by the North Sea Transition Authority (NSTA) in the coming months.

Reabold said it would allocate the proceeds towards advancing various assets within its portfolio.

That would include drilling a critical horizontal well at West Newton and expediting the work programme at the Colle Santo gas project in Italy.

Additionally, it intended to distribute excess cash to its shareholders, as it announced last November.

"We are delighted to receive the second tranche of the payment from Shell," said co-chief executive officer Stephen Williams.

"The sale of the Victory project last year was a significant moment in Reabold's history, proving our strategy to create value for shareholders by identifying, funding and monetising underappreciated but strategically important assets."

Williams said Reabold played a crucial role in developing the Victory project, adding that it would be an important asset to the UK as it looked to increase domestic gas supply.

"Now with a strong funding position, we look forward to progressing the other projects in our portfolio whilst also distributing capital to reward shareholders for their ongoing support of Reabold."

At 1436 GMT, shares in Reabold Resources were up 4.44% at 0.12p.

Reporting by Josh White for Sharecast.com.