Reabold, the AIM investing company which focuses on investments in upstream oil and gas projects, announces that it is in the process of evaluating a possible all-share offer for the entire issued and to be issued share capital of Deltic Energy.

At the value implied by the Exchange Ratio, the Possible Offer, if made, would represent a premium of approximately:

• 9.7 per cent. to the middle market closing price of 0.80 pence per Deltic share on 14 July 2020; and
• 16.8 per cent. to the volume weighted average price for Deltic shares of 0.7512 pence over the three month period ended on and including 14 July 2020.

Reabold believes that the Possible Offer, if made and successfully completed, would deliver clear synergistic benefits and cost savings which should potentially serve to accelerate the delivery of the enlarged group's strategy. In addition, Reabold believes that the complementary nature of the existing Reabold and Deltic portfolios, particularly in the emerging Zechstein oil and gas play underpinned by Reabold's recent West Newton discovery, should facilitate optimal capital deployment both within the proposed enlarged group's expanded portfolio and for potential new project investments. Reabold further believes that on successful completion of a Possible Offer, if made, Deltic shareholders would benefit from, inter alia, a diversified and highly active portfolio, as a result of exposure to the Company's existing assets, whilst current Reabold shareholders would benefit from exposure to Deltic's highimpact, near-term portfolio in the North Sea.

The Board of Deltic Energy confirms that it received an unsolicited and non-binding approach letter from Reabold on 14 July 2020, which it unequivocally rejected on 15 July 2020. 

Deltic Energy does not believe there to be a strong rationale, commercial logic or sufficient operational synergies that would justify a combination of the two businesses.

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