Reabold, the AIM quoted investing company with a portfolio of upstream oil and gas projects, is pleased to provide the following update on the conditional sale of its investee company, Corallian Energy Limited ("Corallian" or "CEL") to Shell U.K. Limited ("Shell"), further to its announcement of 14 September 2022 .
Reabold is pleased that Shell and Corallian have executed a Sale and Purchase Agreement ("SPA") for the conditional purchase of the entire issued share capital of Corallian by Shell. The key terms of the SPA are as detailed in the Company's announcement of 14 September 2022 and Reabold intends to use the net proceeds received to advance development of its existing assets, including West Newton, and assess potential further acquisition opportunities.
Further to Reabold's announcements of 15 September 2022 , at the time of completion of the purchase of the entire issued share capital of Corallian by Shell, Corallian's only asset will be licence P2596, which contains the Victory gas development opportunity.
Corallian expects that completion of the SPA and, therefore, the initial gross consideration payment of £10 million (c. £3.2 million net to Reabold), will take place during Q4 of 2022.
Stephen Williams , Co-CEO of Reabold, commented:
"We are very pleased that Shell has acquired Corallian, and therefore the Victory asset. We believe such a transaction validates Reabold's strategy of creating value for shareholders by identifying, funding and monetising underappreciated, strategically important assets. The net proceeds to be received will provide Reabold with improved financial flexibility to consider further acquisition opportunities and develop its existing assets. In addition, we believe this transaction will result in the production of indigenous natural gas resources that will enhance the UK's energy security position."
