Reabold Resources, the investing company focused on developing strategic gas projects for European energy security, has announced a conditional issue of equity to a group of US-based strategic investors.
The investor group, led by Rohan Oza, has committed to subscribe for a total of 1,900,000,000 new ordinary shares of 0.1 pence each in the Company (the 'New Ordinary Shares'), at a placing price of 0.1 pence per New Ordinary Share (the 'Issue Price'), representing the closing mid-market price on 12 March 2026, raising gross proceeds of £1.9 million (the 'Subscription'). The Subscription is conditional on, amongst other things, the approval of Shareholders in a General Meeting and the Company raising a further £1.1 million in addition to the Subscription prior to 12 May 2026. It is therefore intended that the investment will form the cornerstone of a proposed, extended fundraising process, with additional funds to be raised on the same terms as the Subscription (the 'Fundraising'). The net proceeds of the Subscription and the Fundraising will be used primarily to progress the key West Newton project, including the funding of both Reabold and Rathlin's shares of the recompletion of the A-2 well, expected to take place in the coming months.
In addition, participants in the Subscription and the Fundraising will receive 1.25 warrants for each New Ordinary Share, each with a right to convert to one new ordinary share at an exercise price of 0.11 pence per share. This mechanism is intended to provide the Company with access to additional capital, in the event of a successful A-2 recompletion, and to move into early production as soon as possible.
The investor group recognises the vast strategic value associated with high quality upstream natural gas projects in the UK and Europe and their importance for energy security, which recent geopolitical events have served to emphasise. Additionally, there is a recognition of the significant disconnect between fundamental asset value and market value, particularly for UK listed oil and gas companies, which is in stark contrast to North American markets.
Further information on the Subscription and the Fundraising will be announced in due course.
Sachin Oza, Co-CEO of Reabold, commented:
'We are delighted to receive the commitment from this group of high quality and high profile strategic investors into Reabold at what is an extremely exciting time for the company. We know that our European gas assets have significant value, and a critical role to play in providing reliable domestically sourced energy against the backdrop of tragic global events, which make it ever more obvious that European countries must reduce reliance on imports and promote their indigenous supply. Our asset portfolio, in particular, can also serve the emerging digital economy, which will be a significant driver of growing energy demand across Europe in the years ahead.'
'With the backing of our new investor group we have greatly enhanced our ability to progress our highly valuable portfolio and create substantial value for shareholders, whilst also contributing significantly to European energy security.
'Having recently received the required environmental permitting to conduct stimulation operations at the A-2 well, this funding will allow the JV to move ahead with operations in the coming months, which will be a key step in unlocking the inherent value in our flagship project at West Newton.'
Source: Reabold Resources
