Reabold Resources (LON: RBD) has announced plans to farm-in to a Shell North Sea licence near the hotly-tipped Pensacola prospect to be drilled next month.
The firm has made fresh announcements on its deal with Shell in a bid to persuade shareholders to reject a board takeover next month.
It has set a date of November 17 for its shareholder showdown with minority owners Pershing Nominees, which is seeking to oust the firm’s board.
Reabold said it is “acquiring” the P2332 licence, directly adjacent to the Pensacola prospect, where Shell is operator and is currently parntered with Simwell Resources.
Pensacola is thought to contain prospective potentially recoverable resources of 309 billion cubic feet of gas.
Reabold said the results, expected in the next 12 months, “will be key for the adjacent licence that we are acquiring, the farming out of our Reabold North Sea portfolio, and the drilling of the first horizontal well at West Newton”.
Reabold, which is selling control of its subsidiary Corallian Energy to Shell, has announced today that £4m of the £12.4m it will receive from that deal will go to shareholders.
Shell and Reabold North Sea
Pershing Nominees, a group which owns around 6.93% of oil and gas firm Reabold, has claimed to be nursing a substantial loss over the firm’s performance, and is seeking “fresh blood” to reverse its fortunes.
Reabold has set a date of November 16 in London at 10am for the meeting, with recommendations for shareholders to vote against all resolutions, including the bid to replace the board in its entirety.
The firm described it as an “opportunistic attempt” to seize control of Reabold without paying a premium.
On the proposed board takeover, Reabold added: “Of significant concern to the Company is the fact that the neither the Requisitioning Shareholders nor the Proposed Directors have outlined a strategy for Reabold.
“The current management team, with the oversight of the board, has created Reabold’s portfolio since joining the Board in 2017, and the Proposed Directors have not articulated how they would create value for Shareholders.”
Correction: An earlier version of this article said Shell is acquiring a new North Sea licence. It has been updated to clarify that Reabold has announced plans to farm-in, while Shell has remained operator.