Reabold Resources (RBD) H1 2024 earnings summary

Executive summary

• Cash and cash equivalents increased 41% to £7.6 million as of 30 June 2024, up from £5.4 million at year-end 2023, supported by the final £4.4 million tranche from the Corallian sale to Shell in January 2024.

• Increased stake in LNEnergy to 27.1% in August 2024, with a warrant to potentially reach 30.6%; LNEnergy manages the Colle Santo gas field in Italy, a significant undeveloped gas resource.

• Entered a non-binding Heads of Agreement for LNG offtake from Colle Santo with Gunvor, including a potential prepayment to fund development.

• West Newton gas project in the UK progressing with a feasibility study supporting early production from a single well, targeting first gas in 18 months with £12 million capex.

• Board successfully defended against a shareholder attempt to replace directors in January 2024.

Financial highlights

• Group loss for H1 2024 was £2.0 million, improved from a £3.7 million loss in H1 2023.

• Exploration expenses fell to £0.3 million (H1 2023: £1.3 million), reflecting lower North Sea write-offs.

• Administrative expenses stable at £1.0 million (H1 2023: £1.1 million).

• Net cash used in operating activities was £1.5 million (H1 2023: £1.3 million); investing activities generated £3.7 million inflow, mainly from Corallian sale proceeds.

• 78 million shares repurchased for £75,000 in H1 2024.

Outlook and guidance

• Focus remains on advancing Colle Santo and West Newton gas projects, with regulatory progress and offtake agreements supporting future cash flow.

• Anticipates re-entering and recompleting a West Newton well in 2025 to establish sustained gas flow; gross cost expected to be £1.4 million (£0.2 million net to company).

• Expects to relinquish remaining North Sea licences P2605 and P2504 by November 2024 due to adverse fiscal changes and lack of farm-down opportunities.