Reabold, the AIM quoted investing company with a portfolio of upstream oil and gas projects, announces that, further to its announcement of 28 September 2022, the Company has completed the acquisition of Simwell Resources.

Under the terms of the SPA, the initial consideration due to the Sellers was subject to adjustment to take into account certain expenses incurred by Simwell in the period in between signing the SPA and completion of the Transaction.  Accordingly, the breakdown of the consideration payable and the repayment of liabilities pursuant to the Transaction has been adjusted.

The updated breakdown of consideration payable by Reabold, plus the repayment by Reabold of all outstanding creditors/liabilities of Simwell, pursuant to the Transaction is: (i) £363,835.76, by way of initial consideration, to be satisfied through the issue of 134,753,985 new Ordinary Shares; (ii) £305,157.71 to certain Simwell creditors to be satisfied by the issue of 113,021,374 new Ordinary Shares; and (iii) the cash sum of £373,398.36 payable to certain Simwell creditors. 

Asset Summary:

Simwell has a 30% equity interest in licence P2332 following a farmout to Shell U.K., which is now the operator with a 70% equity interest. Shell acquired a 640 km² 3D seismic survey in the area covering licence P2332 in August 2019, funding Simwell's 30% share. The survey also covered parts of the adjacent licence P2252, which contains the Pensacola prospect that has been stated by Deltic Energy to have a P50 gross prospective resources of 309 bcf and is planned to be drilled in Q4 of 2022. Simwell believe that success at Pensacola would derisk a number of similar prospects in P2332. Shell will continue to fund 100% of the licence costs until a drilling election is made. 

For licences P2329, P2427 and P2486 a 3D seismic survey was acquired over the licences in the summer of 2019 where several prospects have been identified. The new 3D PSTM provides a high-definition view of the Zechstein Hauptdolomite play. A further number of prospects, with 4-way closure, have been identified and are believed to lie on trend to the Ossian-Darach oil discovery, c. 40km to the west.

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