Source: Sharecast
The AIM-traded firm said LN Energy currently held a 20% stake in LNE Srl, which owns 90% of the Colle Santo field and was leading the regulatory approval process for its development.
Under the terms of the new purchase and sale agreement, LN Energy would pay an initial $0.1m on completion, followed by $0.4m on approval of the development plan by Italy’s VIA Commission.
A further $10.5m would be payable within 60 days of the formal concession decree being issued, alongside a 4% net profits interest based on future production revenues.
The agreement would replace a previous arrangement between the parties.
On the regulatory front, Reabold reported that the VIA Commission had now conducted a site visit to the Colle Santo field, following the submission of the environmental impact study for a proposed small-scale LNG development.
LN Energy would submit additional information requested during the visit, and anticipated a decision from the commission shortly thereafter.
“We are very pleased to have simplified the structure of LNEnergy as it relates to its interest in Colle Santo,” said co-chief executive officer Stephen Williams.
“This project holds significant gas reserves, at a time when there is an increased focus on the energy transition and energy security in Europe.”
Williams described LNG as a transition fuel, saying it has a “central role” to play in Italy's energy transition plan.
“The strong environmental credentials of the Colle Santo project underline its potential to directly enhance the energy transition, and energy security, in the near term.
“We remain encouraged by the regulatory process to date and we look forward to receiving the VIA Commission approval for the development of the Colle Santo project, the final milestone ahead of a full production concession being granted.”
At 1334 GMT, shares in Reabold Resources were down 8% at 0.05p.
Reporting by Josh White for Sharecast.com.