Reabold Resources PLC - Investor in ‘low-risk, near term’ oil and gas projects - Increases stake in LNEnergy Ltd by 1.0% through subscription of 17 new ordinary shares at £12,047 per share worth about total £205,000. Reabold now owns about 27.1% of LNEnergy share capital. Further, LNEnergy grants Reabold warrant with six month exercise period to subscribe in cash for further shares at £12,047 each worth about total £747,000. If exercised would give Reabold a 30.6% interest.
LNEnergy holds 20% interest in LNEnergy SRL, which has applied for a 90% stake in the development-ready Colle Santo gas field concession in Abruzzo, Italy. Colle Santo has an estimated 65 billion cubic feet of proven and probable reserves and potential to generate about €11 million to 12 million post-tax free cash flow per annum. LNEnergy has an option to acquire the remaining interest in LNEnergy SRL for $11 million by February 1.
Reabold Co-Chief Executive Officer Stephen Williams says: ‘The Colle Santo project holds significant gas reserves and can be a valuable source of domestic energy supply for Italy, notably in the form of [liquefied natural gas]. We remain encouraged by progress through the regulatory process and we look forward to providing a further update to shareholders in due course.’
Current share price: 0.063 pence
12-month change: down 43%
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