Reabold ups stake in West Newton gas development field

(Sharecast News) - Reabold Resources announced on Friday that it has completed the acquisition of additional shares in Rathlin Energy UK from Connaught Oil & Gas for £0.7m, increasing its equity interest in Rathlin to about 79.8%.

The AIM-traded firm said the deal would enhance its economic stake in the PEDL 183 licence, which includes the West Newton gas development in East Yorkshire.

Following the transaction, Reabold now held a 69.9% economic interest in West Newton and PEDL 183 through its expanded Rathlin shareholding.

That was in addition to its direct 16.665% licence interest in PEDL 183.

Reabold said West Newton is the largest undeveloped onshore gas field in the UK, located close to existing infrastructure and an industrial demand base.

A full-field development plan previously assigned a pre-tax NPV10 of $179m net to Reabold.

With its increased stake, the estimated pre-tax NPV10 of the project now rose to $224m.

At 1006 GMT, shares in Reabold Resources were up 4.22% at 0.05p.

Reporting by Josh White for Sharecast.com.