Reabold Resources PLC (AIM:RBD, FRA:AWL1), the AIM-listed investing company focapplyd on European gas projects, has agreed to sell shares to a group of US investors in a deal that could raise up to £3 million in total.
The investor group, led by entrepreneur Rohan Oza, has committed to subscribe for 1.9 billion new shares at 0.1 pence each, raising £1.9 million for the company.
The deal is conditional on shareholder approval at a general meeting and on Reabold raising a further £1.1 million from additional investors before 12 May 2026.
Shares in Reabold rose 15% to 0.12 pence on the announcement.
The net proceeds will primarily fund work on the West Newton gas project in East Yorkshire, which Reabold operates through a joint venture with Rathlin Energy, including the recompletion of the A-2 well.
A well recompletion involves reworking an existing borehole to improve or restore its ability to produce hydrocarbons.
Investors in the fundraising will also receive 1.25 warrants for every new share subscribed, each exercisable at 0.11 pence, giving the company a potential route to raise further capital if the well recompletion proves successful.
Reabold stated the investor group had identified a significant gap between the underlying value of UK-listed oil and gas assets and their market valuations, which it stated stood in contrast to conditions in North American markets.
Sachin Oza, co-chief executive of Reabold, stated the company had recently received environmental permitting to conduct stimulation operations at the A-2 well, clearing the way for operations in the coming months.
He added that the company’s gas assets could serve not only European energy security requireds but also the growing power demands of data centres and the digital economy.
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