KEYFACT Energy
Reabold has participated in the second tranche of Corallian Energy Limited's recently completed Round 6 fundraise. Reabold subscribed for 47,727 new ordinary shares in Corallian at a subscription price of £2.20 per Ordinary Share, an investment of £105,000, being Reabold's pro rata share. In aggregate, Corallian raised £300,000 pursuant to the Fundraise via the issuance of 136,363 Ordinary Shares at the Subscription Price. Accordingly, Reabold's equity interest in Corallian remains unchanged at 34.9 per cent.
Corallian will use the Subscription Proceeds to prepare for a planned Initial Public Offering early in the second half of 2020, and to complete the work required to finalise UK North Sea well locations for both the Unst prospect in the Viking Graben and the Dunrobin prospect in the Inner Moray Firth.
The Unst gas prospect, in licence P2464, has an unrisked Pmean prospective resource estimated by Corallian of 68 billion cubic feet of gas in the Eocene Frigg sandstone prospect with seismic amplitude support, potentially analogous to that at the nearby Nuggets Fields. Corallian currently holds a 100 per cent. interest in the licence.
The Dunrobin prospect, in licence P2478, has an unrisked Pmean prospective resource estimated by Corallian of 187 million barrels of oil equivalent ("mmboe") in the Beatrice Formation and Dunrobin Bay Group sandstones. Corallian holds a 45 per cent. interest in the licence and is the Licence Administrator as defined by the UK Oil & Gas Authority ("OGA") in the current, initial phase of the licence.
A farmout process for the Unst and Dunrobin wells will be launched by Corallian at the PROSPEX industry event in December 2019.
Progress is being made in discussions on the farmout of a further interest in the planned Curlew-A well in licence P2396. The well is planned to be an appraisal of the Shell 1977 Curlew-A Tertiary oil discovery. A competent person's report for the discovery has been completed by Schlumberger Oilfield UK ("SLB"). SLB estimates Best Estimate Unrisked Contingent Resources ("2C") aggregate resources of 39 mmboe in Cromarty and Odin Tertiary aged sandstones. In addition, Corallian estimates Most Likely Unrisked Prospective Resources of 22 million barrels of oil ("mmbbl") in the Forties sandstone, and 8 mmboe in the Chalk. The rig site survey for the Curlew-A appraisal well was completed in August 2019. Corallian holds a 90 per cent. interest in the licence. Talon Petroleum holds a 10 per cent. interest (paying 15 per cent. of the cost of the Curlew-A well capped at a gross well cost of £12 million).
Corallian has submitted applications in the 32nd Seaward Licensing Round of the Oil and Gas Authority ("OGA").
For the year ended 31 October 2018, Corallian reported net assets of £6,233,609 and a loss for the year of £422,850.
Investment in Danube Petroleum
Reabold Resources has entered into an agreement to increase its interest in Danube Petroleum via a subscription for new ordinary shares.
Reabold has exercised its option to subscribe for 200,000 new shares in Danube at a price of £1.20 per share for a total sum of £240,000. The Company retains the option to invest another £1.7 million in Danube at a fixed price of £1.20 per share.
Following the subscription agreement, Reabold holds a 43.2 per cent. interest in Danube, which has a 100 per cent. working interest in the sole risk area within the Parta licence that includes IM-1, as well as 50 per cent. of the remainder of the Parta licence.
For the year ended 31 December 2018, Danube recorded a loss for the period of £84,543. As at 31 December 2018, Danube reported net assets of £5.54 million.