Reabold Resources has exercised the Second Option to subscribe for 116 new ordinary shares in LNEnergy through an aggregate further investment of £1,650,000. Reabold will fund £750,000 of this from its existing cash resources, while the remaining £900,000 will be satisfied through the issue of 486,486,487 new ordinary shares of 0.1p each in the capital of the Company at a price of 0.185 pence per share to LNEnergy. This increases Reabold's shareholding in LNEnergy to 26.1% of its enlarged share capital.

LNEnergy's primary asset is an exclusive option over a 90% interest in the Colle Santo gas field. The Colle Santo gas field is a highly material gas resource with an estimated 65Bcf of 2P reserves[1], with two production wells already drilled and flow-tested, making the field development ready. LNEnergy believes that the field has the potential to generate an estimated €11-12m of gross post-tax free cash flow per annum.

Colle Santo update

The University of Chieti-Pescara of the Region of Abruzzo announced the formation of a Technical Scientific Committee on 17 November 2023 in support of the development of the Colle Santo Gas Field in Abruzzo, Italy.

The Committee will work in collaboration with LNEnergy's technical and engineering advisors, Italfluid, to provide third party expert support in the evaluation of data to be collected in advance and during LNEnergy's proposed controlled long-term test and monitoring campaign.

The presence of Italfluid's substantial expertise in field development, local and regional authorities and in particular representatives of the Engineering and Geology Department of the University of Chieti-Pescara (leading experts in the subsurface of the Abruzzo Region) is a material step forward in LNEnergy's ongoing concession authorization work. 

Sachin Oza, Co-CEO of Reabold, commented:
"Reabold is excited by the potential of the Colle Santo project and confident in its decision to invest further in LNEnergy. The formalisation of the Technical Scientific Committee at the University of Chieti-Pescara shows constructive local stakeholder  engagement in  the Colle Santo project and follows on from positive regulatory progress taking place at a government level, as Italy looks to secure domestic energy supply. We look forward to updating shareholders on our progress in Italy as we develop this important regional project."

[1] RPS estimate, September 2022

KeyFacts Energy: Reabold Resources UK country profile