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LONDON - Reabold Resources plc has entered into a conditional agreement with Beacon Energy PLC to sell its entire 46.2% stake in LNEnergy Limited, according to a press release issued Tuesday.
The transaction includes an earn out mechanism valued at up to €16 million, through which Reabold will receive 25% of its pro rata share of net cash flow from the Colle Santo gas project in Italy once production begins. Additionally, Reabold will hold approximately 29% of Beacon’s enlarged share capital following the deal.
The transaction will complete in two phases, with the first acquisition of approximately 49% of Reabold’s LNEnergy holding expected to close in November 2025. The second phase, covering the remaining stake, is anticipated to complete in mid-2026, conditional upon receiving the Colle Santo production concession and necessary regulatory approvals.
Beacon plans to seek admission to AIM and conduct a £3.5 million placing to finance the Colle Santo project through to final investment decision (FID) and toward first production. Reabold has committed to invest £750,000 in the placing.
The Colle Santo development is targeting FID in mid-2026 with first gas expected in 2027. The project has non-binding funding agreements in place with Italfluid for vendor financing and with Gunvor for a prepay and offtake arrangement, with potential government grants also being explored.
Stephen Williams, Co-CEO of Reabold, stated that the transaction "crystalised value from the Colle Santo gas project" while protecting shareholders from "any further funding requirement, increased development costs or dilution in the asset."
The agreement follows Reabold’s strategy of developing strategic gas projects for European energy security, similar to its recently monetized Victory gas project in the UK.
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