Reabold offers to increase his coral stake as he contemplates victory in West Shetland
Reabold Resources, the majority owner of North Sea operator Corallian Energy, has offered to acquire an additional 13% of the latter company, as it targets the value of the prospect of victory in the West Shetlands.
The offer, via a share swap (474 Reabold for 1 Corallian share), could see Reabold’s stake in Corallian increase to 49.99%.
Corallian stressed that the offer, open to Corallian shareholders until May 6, would see Reabold shareholders control a larger stake with the prospect of victory.
Victory, which is near the Greater Laggan region operated by Total, is estimated to have 157 billion cubic feet of 2C contingent resources, with a development plan on the ground due by year end. .
Corallian has now signed a letter of intent for a vessel to conduct an environmental survey scheduled for July on the Victory, a requirement of any field development plan at the OGA.
Winning ‘liquidity event’ for Corallian shareholders scheduled for 2022, Reabold mentionned.
Meanwhile, Victory’s first gas is slated for Q4 2024, with the asset having a net present value (NPV) of £ 154million, according to Reabold.
Assuming full acceptance of the offer by Corallian shareholders, Reabold would increase his net stake in Victory from the current £ 53million to approx. £ 72million.
Corallian is also advancing other portfolio projects, including the Laxford Discovery and Scourie Prospect in License P2605, and the Sandvoe Prospect in License P249, all to the West Shetlands.