Reabold Resources, the majority owner of North Sea operator Corallian Energy, has offered to acquire another 13% of the latter firm as it targets value from the Victory prospect West of Shetland.
The offer, through a share swap (474 Reabold per 1 Corallian share) ,could see Reabold’s holding in Corallian increase to 49.99%.
Corallian underscored that the offer, open to Corallian shareholders until May 6, would see Reabold shareholders controlling a greater stake in the Victory prospect.
Victory, which sits near the Total-operated Greater Laggan Area, is estimated to have 157 billion cubif feet of 2C contingent resource, with a field development plan due to be submitted by year’s end.
Corallian has now signed a letter of intent for a vessel to carry out an environmental survey planned for July on Victory, a requirement of any field development plan to the OGA.
A planned “liquidity event” on Victory for Corallian shareholders is due in 2022, Reabold said.
Meanwhile first gas from Victory is planned for Q4 2024, with the asset having a net present value (NPV) of £154m, according to Reabold.
Assuming full take up of the offer by Corallian shareholders, Reabold would increase its net interest in Victory from £53 million currently to ca. £72 million.
Corallian is also progressing other portfolio projects, including theLaxford discovery and Scourie prospect in Licence P2605, and the Sandvoe prospect in Licence P249, all in West of Shetland.