Reabold Resources Reports on Victory CPR and Corallian Strategic Review

Source: 10/20/2021, Location: Europe

Reabold, the AIM investing company which focuses on investments in upstream oil and gas projects, which owns 49.99% of Corallian Energy Limited ("Corallian"), notes that Corallian has decided to conduct a formal review of the various strategic options available to maximise value for all its shareholders.

Corallian has engaged an independent financial adviser, H&P Advisory Limited ("Hannam & Partners"), to conduct the strategic review. As part of the review, Hannam & Partners will approach third parties, who could potentially be interested in making an offer for up to 100% of the fully diluted share capital in Corallian.

Corallian holds a 100% interest in the Victory gas discovery in block 207/1a, located approximately 80km NW of the Shetland Isles, and 17km from the closest pipeline infrastructure tie in location (Greater Laggan Area). The Victory project is a relatively simple, sub-sea tie-back gas development (in 158m water-depth), which has been fully appraised and requires no additional pre-development drilling. A Competent Persons Report (CPR) has recently been completed by RPS Energy Limited (RPS), following the finalisation of both static and dynamic modelling, together with well / network optimisation studies for the development. RPS estimates a total Victory field 2C or best / mid case technically recoverable resource of 179bcf dry gas1. This estimate represents a 14% increase over the previous interim CPR completed by SLR Consulting in December 2020 of 157bcf of technically recoverable gas. Corallian's updated 2C economic valuation (NPV10) of Victory, based on an historical average gas price valuation of 50p/therm, has increased from £146 million to £193 million. Corallian remains on track to submit its draft Victory Field Development Plan to the OGA before the end of 2021, together with the Environmental Statement for the project which will be lodged concurrently with BEIS (OPRED).

The strategic review is being conducted by Corallian's Board. Parties with a possible interest in making a proposal should contact Hannam & Partners on the contact details set out below.

The strategic review is at an early stage and there is no guarantee that it will result in any offer being made (in whole or in part) for Corallian. Reabold remains supportive of Corallian, its Board, and the timing of this strategic review. Reabold believes Corallian's flagship Victory gas development presents a compelling investment opportunity to any prospective investor.

Stephen Williams, co-CEO of Reabold, commented:

"We are extremely pleased with the progress that has been made on the Victory project over the last year, and the development opportunity continues to look highly attractive, particularly against the commodity backdrop we are experiencing at present.

"Reabold is in full agreement with the Corallian board that the time is right to assess options going forwards via this strategic review, and that our significant exposure to the Victory project will at the appropriate time deliver considerable value to Reabold and our shareholders."

1 the 2C or best / mid case technically recoverable contingent resources estimate is a Corallian derived aggregate of "contingent resources - development pending" (145bcf) and "contingent resources - development unclarified" (34bcf)" from the RPS CPR (dated October 2021)

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