Reabold Resources (AIM: RBD) has received a £5.2m payday from Shell (LON: SHEL) linked to the Victory gas field in the West of Shetland.
Last year Reabold struck a deal to sell its subsidiary Corallian Energy to Shell, including the Victory development 29 miles off Shetland.
This marks the second tranche of payments linked to the deal, following £3.2m in November 2022.
A final payment of £4.4m will be received when the NSTA regulator approves Victory, which Reabold said “is anticipated to occur within the coming months”.
The news comes amid yet another takeover move for Reabold amid shareholder unrest.
Co-CEO Stephen Williams said: “We are delighted to receive the second tranche of the payment from Shell. The sale of the Victory project last year was a significant moment in Reabold’s history, proving our strategy to create value for shareholders by identifying, funding and monetising underappreciated but strategically important assets.
“Reabold played a key role in the development of the Victory project, which will be an important asset to the UK as it looks to increase domestic gas supply.”
In statements published by OPRED this year, Shell confirmed it is targeting first gas from Victory in 2025 after drilling and subsea installation work from Q2 2024.
According to its environmental statement, the Victory field has an estimated recoverable resource of 179 billion cubic feet of gas (P50), equivalent to 7% of the UK’s annual natural gas consumption (i.e. 2,560 billion cubic feet in 2020).
Discovered in 1977 by Texaco, it was picked up in the 32nd licensing round by minnow Corallian, which Shell then bought out in November including 100% of Victory.