Reabold, the investor in upstream oil and gas projects, announces a fundraise for gross proceeds of £7.5 million, by way of a placing and subscription of new ordinary shares of 0.1p each ("Ordinary Shares").

Highlights of the Fundraise

•      The Company has raised £7.5 million by way of a placing of, and subscription for, new Ordinary Shares.

•      The Fundraise was completed at a price of 0.55 pence per new Ordinary Share (the "Fundraise Price"), representing a 2.8% premium to the mid-market closing price on 27 January 2021, being the last practicable closing price prior to the announcement of the Fundraise.

•      The net proceeds of the Fundraise will be used, alongside existing cash resources, to provide incremental capital to fund the Company's share of:

• additional appraisal and development activity at the Company's landmark West Newton project, potentially one of the largest oil and gas discoveries onshore UK, notably drilling and testing of the B-2 well;
• activity to assess and define the prospectivity of the wider PEDL 183 licence, which includes West Newton, including a seismic programme and exploration work to identify additional future drilling opportunities;
• potential costs associated with the fully appraised Victory gas development, which was recently awarded to investee company, Corallian Energy, including an environmental assessment in order to achieve FDP in late 2021; and
• additional contingency to provide capital flexibility across the Company's investment portfolio and working capital.

•      A total of 890,909,093 Ordinary Shares (the "Placing Shares") have been placed with new and existing institutional investors (the "Placing") by Stifel, and a total of 472,727,270 Ordinary Shares have been subscribed for (the "Subscription Shares") by certain Directors and institutional investors (the "Subscription"), at a price of 0.55 pence per new Ordinary Share (the "Fundraise Price"), raising gross proceeds of £7.5 million.

•      The new Ordinary Shares as a result of the Placing and the Subscription (together, the "Fundraise Shares") will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares of the Company, including the right to receive all dividends or other distributions made, paid or declared in respect of such shares after the date of issue of the new Ordinary Shares.

Stifel Nicolaus Europe Limited ("Stifel") acted as bookrunner to the Company in connection with the Placing. Strand Hanson Limited ("Strand Hanson") acted as Nominated and Financial Adviser to the Company.

Stephen Williams, Co-CEO of Reabold Resources Plc, commented:
"We would like to thank all those who participated in this oversubscribed Fundraise with the price, at a modest premium to yesterday's closing price, reflecting the level of support we have received.

"We are extremely happy to secure the funding required to progress activity across our asset base, including further drilling and testing at West Newton, adding value across the wider PEDL 183 licence, and providing available funding to move the Victory gas development towards FDP in 2021. We look forward to providing updates to the market on these workstreams in due course."

KeyFacts Energy: Reabold Resources UK country profile