Reabold, the investor in pre-cash flow upstream oil and gas projects, further to its announcement of 5 November 2018, announces the completion of its 37.08 per cent. investment in Rathlin Energy (UK) Ltd ("Rathlin").

Completion of the deal was conditional on, inter alia, Connaught Oil & Gas Limited ("Connaught") agreeing to settle a liability of £33.8 million owed to it by Rathlin and the finalisation of a farm out, by Rathlin, of Licence PEDL183 (onshore UK) to Union Jack Oil plc ("Union Jack") and Humber Oil & Gas Ltd ("Humber") (the "Farm Out"), resulting in Rathlin retaining a 66.67 per cent. equity interest in Licence PEDL183. These conditions have now been satisfied.

Licence PEDL 183 contains the significant West Newton A-1 gas discovery, with an appraisal well planned for H1 2019. The well will test two targets; the first target is the Kirkham Abbey Formation gas discovery which has an estimated 72 per cent chance of success and an NPV of $247m* and the second target is a deeper Cadeby Formation reef flank oil prospect, considered to have an NPV of $850m and an estimated 24 per cent. chance of success*.

In line with Reabold's investment strategy, West Newton will bring near-term operational activity and, in a success case, offer a fast pathway to monetisation through its proximity to existing gas pipelines and infrastructure.

Stephen Williams, Co-Chief Executive Officer of Reabold Resource, is to be appointed to the Board of Rathlin. Reabold retains the right to appoint a director to the Rathlin board whilst continuing to hold an equity interest of more than 15 per cent. in the company.

In 2017, Deloitte prepared a CPR incorporating both the data from the West Newton discovery well and subsequently acquired 3D seismic data over the field. The Deloitte CPR assigns Contingent Resource to the Kirkham Abbey gas formation and is the source of management volumetric assessments.

For the year ended 31 December 2017, Rathlin recorded a loss after tax of £1.3 million and reported net liabilities of £30 million.

*Connaught Management estimate (Note: This estimate is based on the economic evaluations and most recent price forecasts provided by Deloitte LLP for the CPR, updated by Connaught)