Corallian boosts interest in North Sea discovery

UK private oil and gas operator Corallian Energy has raised about $1.5 million in an equity fundraise, increased its interest in a license which contains the Colter South discovery, and made progress towards starting its Curlew-A well drilling in the UK North Sea.

Ensco 72 drillling rig used for Corallian’s Colter drilling campaign. Author: SP Mac

Corallian has completed an equity fundraise, raising £1,225,000 ($1.5 million) at £2.20 ($2.68) per share with a new shareholder.

Completion of the fundraise has also enabled Corallian to allot the shares related to the Advanced Subscription Agreements that it executed with its existing shareholders in December 2018 and February 2019.

Reabold, the AIM investing company which has a 32.9 percent equity interest in Corallian Energy, said on Wednesday it had subscribed for shares under the Advanced Subscription Agreements for £750,000, as announced on February 25, 2019, and for £300,000, as announced on December 11, 2018.

Pursuant to the terms of the Advanced Subscriptions, new shares in Corallian were to be allotted at a 30% discount to shares issued in connection with the Round 6 Fundraise. Accordingly, Reabold has been allotted 681,818 new Corallian shares at £1.54 per share, taking the company’s interest in Corallian to 34.9 percent from 32.9 percent.

 

Corallian increases interest in North Sea licenses

 

A portion of the net proceeds from the fundraise have been utilized by Corallian to acquire Corfe Energy’s interests in licenses in which they were a JV partner with Corallian.

Such interests comprise four licenses in the Wessex Basin, which includes the license containing Colter South, and the Inner Moray Firth, including three new licenses offered in these areas in the 31st Licensing Round.

The Pmean Prospective Resources attributable to Corfe’s interests are 10 mmboe in the Inner Moray Firth and 6 mmboe in the Wessex Basin.

Following this transaction, which completed this week, Corallian’s interest in the Wessex Basin JV licenses increases to 74 percent and in the Inner Moray Firth JV licenses to 45 percent.

A further portion of these funds have been used by Corallian for the Curlew-A rig site survey, which has already started and is expected to be completed by the end of this week.

Reabold noted that Corallian expects the well to be drilled in H1 2020 once the well farm-out process has been completed.

As reported earlier this week, Corallian appointed Fraser Well Management as the well operator for Curlew-A. The Curlew-A discovery is located in license P2396 in the UK Central North Sea, 210km east of Aberdeen and will be the fourth that FWM delivers in its capacity as well operator.

Stephen Williams, Co-CEO of Reabold, commented: “We are very pleased with the equity fundraise carried out by Corallian, representing a significant premium to the price at which Reabold made its investment. Our increased exposure to the Wessex Basin licences, which contain the Colter South Discovery, is a welcome addition that exemplifies the flexibility of the Reabold strategy.”


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