Tuesday 23 February 2021

Reabold, the investor in upstream oil and gas projects, is pleased to announce that it has entered into a conditional convertible loan instrument (the "Instrument") with Corallian Energy Limited ("Corallian") pursuant to which Reabold will advance £1 million to Corallian (the "Convertible Loan").

Pursuant to the existing shareholders agreement, to which Reabold is a party, the Convertible Loan is conditional on Corallian receiving the consent of 75 per cent. or more of its shareholders. Reabold has an existing 36.9 per cent. shareholding in Corallian, which, for the avoidance of doubt, can count towards the 75 per cent. threshold.

Corallian intends to utilise the proceeds of the Convertible Loan to support workstreams related to the submission of a draft Field Development Plan for the Victory gas field ("Victory"), which Corallian is aiming to do before the end of 2021, and for general working capital purposes.

The Convertible Loan, including interest at a rate of 15 per cent. per annum (accruing daily), will convert into new ordinary shares in Corallian ("Corallian Shares") within 21 months from the date of Instrument. If, during this period, Corallian is acquired, undertakes a material disposal of assets, an initial public offering or a reverse takeover, where the relevant valuation (each, a "corporate action") is greater than £3.20 per share, the Convertible Loan will convert at £3.20 per share. If the relevant valuation is below £3.20 per share, then the Convertible Loan will convert at a price equal to the relevant valuation. If no such corporate action has taken place within 21 months, the Convertible Loan will automatically convert at a price of £1.50 per share.

Stephen Williams, Co-CEO of Reabold, commented:

"We are delighted to be able to provide further investment in Corallian through an attractive structure in order to fund near-term activity, in line with our stated strategy. The Victory environmental study will take place this summer and we are eagerly awaiting the submission of the draft Field Development Plan to the OGA at the end of this year.

"Victory is a simple, low-risk project, which has been fully appraised and requires no further pre-development drilling, accelerating the potential return on investment for Reabold."