Corallian sold to unnamed oil major
Corallian, the private UK oil and gas exploration company focused on the shallow water Victory licence west of Shetlands, is set to be acquired for £32mn ($37mn) by an unspecified oil and gas major, its shareholder Reabold Resources announced September 14.
The acquisition will see the oil major pay £3.20/Corallian share to acquire Victory and Corallian's business infrastructure, subject to shareholder approvals by each party.
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Reabold, which also focuses on UK exploration, said the acquiring company would pay £10mn (£0.80/share) as an initial consideration, due to be paid in the fourth quarter of 2022. A further £22mn (£2.40/share) payment will be triggered once Corallian's flagship Victory project passes certain milestones, but could be split into two payments of £12mn (£1.20/share) if the milestones are achieved later than December 2023.
Corallian is the 100% shareholder and operator of the Victory licence. Situated in licence P2596 and awarded in the UK's 32nd round for offshore acreage, Victory contains 179bn ft3 of recoverable gas resources and could potentially be connected to shore via a tie-back to TotalEnergies's third party access point, in the existing Greater Laggan Area gas transport system.
Aside from Victory, Reabold Resources said in a Twitter post September 14 that its team had agreed to acquire Corallian's four other North Sea licences for £250,000, buying up 100% equity in Oulton, Curlew-A and Quoys & Unst, as well as a 36% operator stake in the Dunrobin licence, home to two up-dip gas prospects.
All four projects are described as key "prospects located near existing" infrastructure, allowing Reabold to balance out risk at its existing onshore UK portfolio asset, the West Newton project.
Stephen Williams, co-CEO of Reabold, said: "The board is delighted with the value uplift and improved financial position this transaction brings to Reabold.
"We will continue in our mission to identify, fund, and monetise low-risk, under-valued, strategically important oil & gas assets where their development benefits from being near existing infrastructure.
"We also recognise our role of improving the UK's energy security, by unlocking the potential of currently under appreciated assets."