Wednesday 14 September 2022

Reabold, the AIM quoted investing company with a portfolio of upstream oil and gas projects, is pleased to provide the following update on the conditional sale of its investee company, Corallian Energy Limited ("Corallian" or "CEL"), further to its announcement of 4 May 2022.

Key highlights for Reabold shareholders:

· Total gross cash consideration for Corallian and its Victory licence of £32 million to an oil and gas major; with Reabold's share of net proceeds being c.£12.7 million

o Corallian has notified its shareholders that Corallian has received a conditional offer of £3.20/Corallian share, with the proceeds to be staged as outlined below

o Reabold holds 3,769,487 shares in Corallian

o Reabold will hold a further 195,416 Corallian shares post conversion of Reabold's Convertible Loan Notes ("CLNs") which will occur prior to completion of the sale and will be sold on the same terms and simultaneously with the currently issued Corallian shares

· Victory asset sale valuation represents significant uplift on Reabold's total investment of £7.5 million in Corallian since late 2017; remaining North Sea licences currently owned by Corallian will be acquired by Reabold

· Net proceeds received will provide Reabold with improved financial flexibility

· Excellent opportunities remain to fund, progress, and monetise Reabold's existing oil & gas assets including:

o West Newton drilling of first development well, planned for H1 2023 to materially de-risk the project at modest cost, as part of a phased investment programme

o North Sea licences to be acquired from Corallian for £250,000, which have prospects located near existing oil and gas infrastructure

· Market dynamics: industry conditions and the UK's focus on energy security very supportive of asset development opportunities

Stephen Williams, Co-CEO of Reabold, commented:

"The Board is delighted with the value uplift and improved financial position this transaction brings to Reabold. We will continue in our mission to identify, fund, and monetise low-risk, under-valued, strategically important oil & gas assets where their development benefits from being near existing infrastructure. We also recognise our role of improving the UK's energy security, by unlocking the potential of currently under appreciated assets.

With the enhanced capital resources this transaction brings, the Board will continue its strong oversight of the company's capital allocation policy. There remains tremendous potential to drive further value for shareholders through recycling the Corallian proceeds across the portfolio, initially focussed on West Newton's first development well in 2023."