Tuesday 15 May 2018

Reabold Resources announced that Corallian Energy has entered into a letter of intent (LOI) with UK based drilling contractor Ensco U.K. Ltd for the provision of a jack-up drilling unit to drill its Colter and Wick wells. Within the LOI the parties have agreed, subject to approvals and consents, headline terms for a suitable unit to conduct drilling operations in Q3/4 2018.

Since Reabold's initial investment in Corallian Energy Limited, becoming its cornerstone investor last November, substantial progress has been achieved within the portfolio of UK nearshore licenses:

- Nov 2017: Upland Resources and Corfe Energy farm into the Wick prospect, resulting in Corallian's interest being partially carried for the initial exploration well

- Jan 2018: United Oil & Gas farms into the Colter prospect, paying a cash equivalent to 13.33% to earn a 10% interest

- Feb 2018: Baron Oil acquired a part of Corfe Energy's position in Wick agreeing to pay 20% of the well costs to earn a 15% interest in the licence

- March 2018: Baron Oil farms into the Colter prospect, paying 6.67% to earn a 5% interest

- March 2018: Corallian completes further fundraise at premium valuation to Reabold's initial investment

This leaves Corallian fully funded to drill Colter, with an estimated 30 mmbbls gross recoverable resources, at a 51.67% equity interest, and Wick, with an estimated 23 mmbbls gross recoverable resources*, at a 40% interest.

In addition, the Oulton appraisal project continues to be progressed with a CPR underway, potentially providing an additional and compelling third leg to Corallian's portfolio of UK assets.

This value-enhancing activity within the Corallian portfolio following the Company's intital investment validates Reabold's corporate strategy of providing capital to unlock undervalued pre-cash flow assets.