LONDON — Reabold has agreed to a conditional sale of its investee company, Corallian Energy, to Shell UK.
On completion of the purchase, Corallian's sole asset will be license P2596 west of Shetlad, which contains the potential Victory gas development.
Reabold has a 49.99% interest in Corallian, which in turn has a 100% interest in the discovery.
Victory is in Block 207/1a, 80 km northwest of the Shetland Isles, and 17 km from a tie-in location to the closest pipeline infrastructure (serving the TotalEnergies-operated Greater Laggan Area).
Studies to date have focused on a subsea tieback gas development in 158 m water depth, with a Competent Persons Report from RPS Energy estimating a 2C technically recoverable resource of 179 Bcf dry gas.
Stephen Williams, Co-CEO of Reabold, said, “The net proceeds to be received will provide Reabold with improved financial flexibility to consider further acquisition opportunities and develop its existing assets.
“In addition, we believe this transaction will result in the production of indigenous natural gas resources that will enhance the UK's energy security position."