Reabold kick-starts gas and oil drilling in Moray Firth and North Sea
An upstream oil and gas investment company will initiate drilling this year across half a dozen projects in areas including the Moray Firth and the North Sea.
Reabold Resources is run by co-chief-executives Stephen Williams and Sachin Oza, both former M&G Investments analysts who saw the advantages of deploying capital at the bottom of the cycle. It is focused on generating returns via low-risk projects with high potential upside.
Williams told Scotland on Sunday that the London-based firm is focused on “attractive” projects in mature areas that lack funding and are not progressing. “Our model is really about bringing fresh capital into those projects to fund them at the right point in the cycle.”
Costs being low is a plus, “but also it’s good to reinvigorate some of these areas”, attracting further industry players.
Aim-quoted Reabold has been raising capital and building up a portfolio of projects in which to invest its funds. These include the Wick Prospect in the Inner Moray Firth, where Reabold has an interest in the exploration well via its investment in operator Corallian Energy.
There is also Oulton, a low-cost oil appraisal well in the North Sea, again via Reabold’s 32.9 per cent interest in Corallian that was acquired for £2.5 million.
Reabold raised a total of £13.5m in placings in October and March and last month revealed the acquisition of California operating company Gaelic Resources.
Williams said: “If these first [six] wells work… then we’re confident that there will be access to considerable additional capital, which means you can roll the strategy out across additional projects.
“I think the second half of this year will be the really exciting part.”