London-based oil & gas investment company Reabold Resources has completed the final tranche of its investment in compatriot Corallian Energy, which is currently preparing to drill two wells off the UK, for £1 million ($1.3 million).
Reabold’s investment of £1 million was announced on November 1, 2017.
Including the £1.5 million announced on March 1, 2018 and the one announced in November, Reabold will have invested £2.5 million in Corallian and own 32.9% of Corallian’s issued share capital.
Sachin Oza, Co-CEO of Reabold Resources, commented: “We continue to work closely with Corallian after cornerstoning their recent fundraise and are delighted to see their portfolio of assets continue to mature following our initial investment in November.
“For a total investment of just £2.5m, Reabold has gained a 32.9% interest in the entire Corallian portfolio which, in 2018, will consist of at least two wells, namely, Colter and the partially carried Wick well.”
In preparation for the drilling, Corallian recently entered into a letter of intent with Ensco for the provision of a jack-up rig to drill its Colter and Wick wells.
The Colter and Wick wells are located in licenses P1918 (UKCS Block 98/11a) and P2235 (UKCS Block 11/24b), respectively. Corallian is the operator of both licenses.
Stephen Williams, Co-CEO of Reabold Resources, commented: “Our investment in Corallian is indicative of our investment strategy; creating value in potentially unforeseen ways. In the case of Corallian, this has provided exposure to multiple projects whilst helping to facilitate three farm-in opportunities to the mutual benefit of all parties.
“Sachin and I are focused on providing near-term catalysts for shareholders with outstanding economic conditions and we both look forward to updating shareholders on further investments and operational news.”
It is worth reminding that Corallian’s costs for the Wick and Colter wells have gone up from initial estimate due to increased oil price, affecting rig fuel costs.