Reabold Resources (LON:RBD) Statement re: Proposed Placing & Investments

Further to its announcement of 4 October 2019 and continued market speculation, Reabold, the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, announces that it is in advanced discussions with regard to:

· Agreements to increase its interest in Rathlin Energy (UK) Limited (“Rathlin”) to up to 74.99 per cent., through a £16 million cash investment and, potentially, a £7 million equity swap with existing Rathlin shareholders; and

· An agreement to increase its interest in Danube Petroleum Limited (“Danube”) to between 49 and 52 per cent. through the exercise of an existing option to invest an additional £1.95 million in Danube (together, the “Investments”).

The Investments are proposed to be funded through a placing of new ordinary shares of 0.1 pence each in the capital of the Company (“Ordinary Shares”) (the “Placing Shares”) with new and existing institutional investors to raise gross proceeds of, in aggregate, £20 to £24 million (the “Placing”), and a potential issue of new Ordinary Shares to the holders of Rathlin shares in a proposed equity swap.


· Proceeds from the Placing are intended to be deployed into what Reabold believes are highly accretive investments in Rathlin and Danube, at significant discounts to the value of the respective operators’ discovered resource estimates, with the Placing proceeds used to fund further drilling and testing programmes to unlock further value potential.

· £16 million cash investment into Rathlin, the operator and 66.67 per cent. owner of the West Newton discovery and wider PEDL 183 licence, alongside a proposed £7 million equity swap to be offered to existing Rathlin shareholders, to potentially increase the Company’s interest in Rathlin to up to 74.99 per cent., which could result in an effective interest of up to 50 per cent. in the licence.

· Rathlin transaction follows the recent discovery of a 45 metre oil column and better than expected reservoir characteristics.

· Exercise of a £1.95 million option to increase Reabold’s investment in Danube, with a 100 per cent. working interest in the Sole Risk Area within the Parta licence and 50 per cent. of the remainder of the Parta licence in Romania, to between 49 and 52 per cent.

· Exercise follows the recent successful IM-1 appraisal well and the investment proceeds will fund the IM-2 well, planned for Q2 2020.

Stifel Nicolaus Europe Limited (“Stifel”) is acting as bookrunner to the Company in connection with the Placing. Strand Hanson Limited (“Strand Hanson”) is acting as Nominated and Financial Adviser to the Company.

The Placing will be conducted through an accelerated Bookbuild (the “Bookbuild”) which is expected to be launched at 4.45 p.m. on 8 October 2019. The Bookbuild is expected to close no later than 08.00 a.m. on 9 October 2019, but Stifel and the Company reserve the right to close the Bookbuild earlier or later, without further notice.



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