Reabold Resources (LON: RBD) has confirmed it is still in negotiations with a potential buyer for its major stake in Corallian Energy.
It was revealed in May that the oil and gas company has received a conditional, non-binding offer from a “credible party” for its 49.99% stake in Corallian.
The offer was deemed at the time to be “sufficiently attractive” and discussions have been ongoing since.
As part of the potential sale process, Reabold entered into a conditional sale and purchase agreement to acquire Corallian’s working interest in all the non-Victory licences within its portfolio for £250,000.
Both parties had the ability to terminate the deal is the sale had not completed by August 31.
That date has now passed but, given negotiations remain ongoing, it has been confirmed that neither Reabold nor Corallian intend to terminate the SPA.
A further update will be provided in due course, the companies said.
Reabold (LON: RBD) is carrying out an ongoing review of its stake in Corallian, which has a 100% interest in the Victory Gas discovery, west of Shetland.
If the deal goes through, the North Sea exploration and appraisal licences that will transfer to Reabold are P2396, P2464, P2493, P2504 and P2605 (all at 100% working interest) and P2478, (36% working interest).
Reabold intends to seek appropriate farm-out opportunities for the six licenses in order to “de-risk and monetise the prospects”.
Corallian would be left with just licence P2596, which contains Victory.
Plans were submitted to the UK Government last year to develop the field, which is estimated to hold mid-case recoverable resources of 179 billion cubic feet of gas (bcf).
It is valued at around £193 million, based on a historic average gas price of 50p per therm.
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