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    RBD   GB00B95L0551

REABOLD RESOURCES PLC

(RBD)
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Reabold Resources : Exane BNP Research Note - 20th October 2021

10/22/2021 | 06:44am EST

SPONSORED

RESEARCH

OIL & GAS

REABOLD RESOURCES

PRICE

0.16p

(+132%) 0.47p (+203%)

VALUATION (UPSIDE) 0.36p

Sales process commencing for Victory project, positive

20 OCTOBER 2021 at 09:20*

Thomas Martin

(+44) 203 430 8435

Thomas.Martin@exanebnpparibas.com

Sales process commences

Reabold has announced that Corallian, a company through which Reabold holds its 49.99% effective interest in the UK North Sea Victory gas development project, has commenced a strategic review process to solicit bids for up to a 100% interest in Corallian.

Victory is the largest asset in the portfolio

Our risked NAV for Victory (incorporating a 55% chance of success) stands at 0.34p/sh (0.61p/sh un-risked), equivalent to ~ 2/3 of the gross asset value (pre balance sheet adjustments, G&A etc). This announcement is consistent with our view that Victory could be the first asset in the portfolio to be monetised, potentially in the next year.

Updated resource estimates; 2C increases 14%

Reabold also announces an updated CPR has been produced for Victory, which attributes 2C (best case) recoverablecrothersresou ces of 179bcf dry gas. This is ~14% above the prior un-risked estimate of 157bcf, which is incorporated in our analysis. The revised resource assessment comprises

of resources f which development is pending, plus 34bcf of upside potential for which development is unclarified. It is believed the incremental 34bcf is connected to the development145bcf wells, but production data will be required to confirm this. We make no changes to our analysis this morning, which equates to inclusion of ~35% of the 34bcf increment in our un-risked estimates.

Core NAV offers ~130% upside

Clearly this is the start of the process, and it is not certain a sale will be agreed, but we believe the disposal of Victory would be a material value catalyst for Reabold. The closing share price offers ~130% upside to our 0.36p/sh core NAV, which only incorporates value for Victory and California (which is small in the context of the business). Incorporating risked value for the assets under appraisal, around which there is a greater degree of uncertainty, our 0.47p/sh discovered resource NAV offers ~200% upside. Please refer to our 15/10/21 initiation, 'Being Bold'for further details.

Price (19 October 2021)

0.16p

Performance(1)

1w

1m

3m

12m

Market cap (GBPm / EURm)

14 / 16

Absolute(%)

(24)

(39)

(61)

(75)

Free float (GBPm / EURm)

14 / 16

Rel. Oil & Gas(%)

(26)

(47)

(68)

(84)

EV (GBPm / EURm)

-5.6 /-7

Rel. MSCI Small Cap(%)

(27)

(39)

(63)

(81)

3m avg volume (GBPm / EURm)

0.1 / 0.2

Refinitiv / Bloomberg

RBDR.L / RBD LN

Country / Sub Sector

UK / Exploration & Production

Financials

12/19

12/20

12/21e

12/22e

Valuation metrics(2)

12/19

12/20

12/21e

12/22e

EPS, Adjusted (p)

(0.11)

(0.04)

(0.03)

(0.03)

P/E (x)

-

-

-

-

EPS, Company (p)

(0.11)

(0.04)

(0.03)

(0.03)

Net yield (%)

-

-

-

-

EPS - Refinitiv (p)

-

(0.04)

(0.01)

(0.01)

FCF yield (%)

(11.9)

(9.3)

(15.0)

(8.4)

Net dividend (p)

-

-

-

-

EV/Sales (x)

-

4.2

-

-

EV/EBITDA (x)

-

-

-

-

Sales (GBP)

1,452

1,035

1,216

1,177

EV/EBITA (x)

1.8

-

2.8

0.4

EBITA, Adj. (GBP)

(1,175)

(1,624)

(1,961)

(1,536)

EV/CE (x)

-

0.3

-

-

Net profit, Adj.(GBP)

(4,110)

(2,489)

(2,871)

(2,535)

ROCE (%)

(13.9)

(12.6)

(14.9)

(9.1)

Net Debt/EBITDA, Adj. (x)

-

-

-

-

All valuation metrics based on adjusted figures

Source: Exane BNPP (estimates), Refinitiv (consensus)

(1) In listing currency, with dividend reinvested (2) Yearly average prices for FY to end-12/19, 12/20

SPONSORED RESEARCH: Exane is receiving compensation from Reabold Resources to cover and produce research on the stock.

  • Date and time (London Time) on which the investment recommendation was finalised. It may differ from the date and time of broad dissemination on the website. See Appendix (on p2) for Analyst Certification, Important Disclosures and Non-US Research Analyst disclosures.

Prepared solely for James Crothers. Not to be distributed anywhere. Strictly for personal use.

DISCLOSURE APPENDIX

Analyst Certification

I, Thomas Martin, (authors of or contributors to the report) hereby certify that all of the views expressed in this report accurately reflect my personal view(s) about the company or companies and securities discussed in this report. No part of my compensation was, is, or will be, directly, or indirectly, related to the specific recommendations or views expressed in this research report.

Non-US Research Analyst Disclosure

The research analysts named below were involved in preparing this research report. Research analysts at Exane SA (including Exane SA branches, based in the United Kingdom, in the European Economic Area or Switzerland) are not associated persons of Exane Inc. and thus are not registered or qualified in the U.S. as research analysts with the Financial Industry Regulatory Authority (FINRA) or the New York Stock Exchange (NYSE). These non-U.S. analysts are not subject to the NASD Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Thomas Martin

Exane SA

London branch

Exane SA is authorised by the Autorité de contrôle prudentiel et de regulation ("ACPR") and by the Autorité des Marchés Financiers ("AMF") in France. Exane SA branches based in the European Economic Area are authorized and regulated by ACPR and by the local relevant regulator.

Exane SA Geneva Branch is authorized and regulated by the Swiss Financial Market Supervisory Authority ("FINMA")

Exane SA, London Branch is deemed authorised and regulated by the Financial Conduct Authority. Details of the Financial Services Contracts Regime, which allows EEA-based firms to operate in the UK for a limited period to carry on activities which are necessary for the performance of pre-existing contracts, are available on the Financial Conduct Authority's website

Exane Inc. is regulated by FINRA and the U.S. Securities and Exchange Commission in the United States.

Research Analyst Compensation

The research analyst(s) responsible for the preparation of this report receive(s) compensation based upon various factors including overall firm revenues, which may include investment banking activities.

Sponsored Research

The subject Company of this Research report has commissioned Exane to cover its stock and, consequently, Exane has received compensation from the Company for the preparation and dissemination of this research report.

Research Analyst-Specific Disclosures

The research analyst(s) responsible for the preparation of this report (or members of their household) may have a relationship with the companies covered by this research report, as described in the numbered disclosures below. The table immediately below indicates which, if any, of these disclosures apply to the research analyst(s) responsible for preparation of this research report.

Research Analyst(s)

Companies

Disclosures

NONE

1 - The research analyst(s) responsible for the preparation of this report or a member of his/her household has/have a financial interest in the securities of the subject company/ies, as indicated in the previous table.

2 - The research analyst(s) responsible for the preparation of this report or a member of his/her household serve(s) as an officer, director or advisory board member of the subject company/ies indicated in the previous table.

3 - The research analyst(s) responsible for the preparation of this report received compensation from the subject company/ies indicated in the previous table in the past twelve months.

Exane-Specific Regulatory Disclosures

Exane SA (including Exane SA branches, based in the United Kingdom, in the European Economic Area and in Switzerland) and Exane Inc. (collectively, "Exane") may have a relationship with the companies covered by this research report, as described in the numbered disclosures below. The table immediately below indicates

which, if any, of these disclosures apply to Exane's relationship with

subject company/ies.

Companies

Disclosures

crothers

Reabold Resources

13

1

- Exane beneficially owns 1% or more of ny class of common equity securities of the subject company/ies.

2

- Exane managed or co-managed an offering of Equity securities for the subject company/ies in the past 12 months.

3

- Exane received compensation for investment banking services from the subject company/ies in the past 12 months (the only investment banking services for

Exane with regards to the subject company/ies are those when Exane is distributor or underwriter for Equity securities offerings managed-orco-managed by BNP Paribas, when BNP Paribas managed or co-managed an offering of Equity securities for the subject company/ies).

4 - Exane expects to receive or intends to seek compensation for investment banking services from the subject company/ies in the next 3 months.

5 - Exane SA is a market maker and/or liquidity provider in the securities of the subject company/ies.

6 - Exane Inc. received compensation for products and services other than investment banking services from the subject company/ies in the past 12 months.

7 - Exane Inc. had an investment banking services client relationship with the subject company/ies in the past 12 months.

8 - Exane Inc. had a non-investment banking, securities-related client relationship with the subject company/ies in the past 12 months.

9 - Exane Inc. had a non-securities-related services relationship with the subject company/ies in the past 12 months.

10 - Exane Inc. is a market maker in the securities of the subject company/ies.

11 - Exane beneficially owns at least 0.5% long or short position of the subject company/ies.

12 - Exane received compensation from a Private Equity firm to carry out a bespoke work related to the subject company/ies in the past 12 months.

13 - Exane received or expects to receive compensation for non-investment banking services from the subject company/ies in the past 12 months or in the next 3 months.

14 - Sections of this report, with the research summary, target price and rating removed, have been presented to the subject company/ies prior to its distribution, for the sole purpose of verifying the accuracy of factual statements.

15 - Following the presentation of sections of this report to this subject company, some conclusions were amended.

Commitment to transparency on potential conflicts of interest: BNP Paribas

While the Exane group of companies is wholly owned by BNPP, Exane and BNPP have entered into certain arrangements that are reasonably designed to maintain the independence of Exane's research reports. These research reports are published under the brand name "Exane BNP Paribas". Nevertheless, for the sake of transparency, we separately identify potential conflicts of interest with BNPP regarding the company/(ies) covered by this research document.

Exane BNP Paribas Research

Reabold Resources

20 OCTOBER 2021

page 2

Prepared solely for James Crothers. Not to be distributed anywhere. Strictly for personal use.

BNP Paribas-related disclosures

BNPP may have a relationship with the companies covered by this research report, as described in the numbered disclosures below. The table immediately below indicates which, if any, of these disclosures apply to BNPP's relationship with the subject company/ies.

CompaniesDisclosures

NONE

1 - BNPP beneficially owns 1% or more of any class of common equity securities of the subject company/ies

2 - BNPP managed or co-managed an offering of Equity securities for the subject company/ies in the past 12 months 3 - BNPP acted as Advisor in a Public Offer involving the subject Company/ies in the past 12 months.

4 - BNPP received compensation for investment banking services from the subject company/ies in the past 12 months

5 - BNPP expects to receive or intends to seek compensation for investment banking services from the subject company/ies in the next 3 months 6 - A member of senior BNPP management is a member of the Board of the subject company

7 - BNPP beneficially owns at least 0.5% long or short position of the subject company/ies.

8 - BNPP has been mandated by the subject company/ies for a bond issue in the last 12 months.

Price and Ratings Chart

Reabold Resources

Historical closing price & target price (as of 19/10/2021)

Source: Exane BNP Paribas

Historical rating & target price changes

The latest company-specific disclosures, valuation methodologies and investment case risks for all other companies covered by this document are available on http://cube.exane.com/compliance.

Exane BNP Paribas Research

Reabold Resources

20 OCTOBER 2021

page 3

Prepared solely for James Crothers. Not to be distributed anywhere. Strictly for personal use.

REABOLD RESOURCES

Exploration & Production | Oil & Gas - United Kingdom

Company description

Reabold is an investment company focused on upstream oil & gas assets. Reabold aims to invest in discoveries, adding value through the appraisal/development planning stages, monetising investment prior to heavy development spend. The business is led by co-CEOs Sachin Oza and Stephen Williams, w ho have experience managing oil & gas investment at a number of investment institutions. Repsol's former head of global exploration is on the board, and experienced industry veteran Peter Dolan is an advisor.

Management

Sachin Oza, co-CEO

Stephen Williams, co-CEO

Anthony John Samaha, Financial Director

Ownership structure

Premier Fund Mgmt

10.2%

Ruffer Inv Mgmt

6.3%

Chelverton

5.2%

FIL

4.8%

Other Shareholders

73.6%

Revenues

100%

100% North America

Analyst

Thomas Martin (+44) 203 430 8435

Thomas.Martin@exanebnpparibas.com

Price at 19 Oct. 21: 0.16p

0.36p (+132%) | 0.47p (+203%)

Peer group YTD performance

Stock

Price

YTD performance in EUR (%)

(19

Oct. 21)

Abs.

Rel. Sector

Maire Tecnimont (+)

EUR

3.58

103.2

58

Aker Solutions (=)

NOK

22.2

45.4

13

Vivo Energy (+)

p

102

33.2

3

Drilling Co. (=)

DKK

253.0

31.3

2

Petrofac (=)

p

159

22.7

(5)

TechnipFMC (=)

EUR

6.7

16.8

(9)

T. EN (=)

EUR

14.1

11.0

(14)

Saipem (-)

EUR

2.20

(0.4)

(23)

Subsea 7 SA (+)

NOK

77.0

(3.4)

(25)

SBM Offshore (+)

EUR

14.3

(3.9)

(25)

GTT (-)

EUR

70.3

(9.6)

(30)

CGG (=)

EUR

0.65

(20.0)

(38)

Vallourec (=)

EUR

7.3

(20.6)

(38)

Rubis (=)

EUR

29.0

(21.2)

(39)

Wood (=)

p

228

(21.7)

(39)

Tecnicas Reun. (=)

EUR

8.4

(22.0)

(39)

SDX Energy (SR)

p

11.8

(30.4)

(46)

Reabold (SR)

p

0.16

(74.9)

(81)

Sector calendar

  1. Oct. 21 Baker Hughes: Q3 Earnings 2021 (13:00 CET) Kinder Morgan, : Q3 Earnings 2021 (22:00 CET) TechnipFMC: Q3 Results 2021 (22:00 CET)
  2. Oct. 21 T. EN: Q3 Results 2021 (07:30 CET)

Vivo Energy: Q3 Trading Statement 2021 (08:00 CET)

Valero Energy: Q3 Earnings 2021 (12:00 CET)

  1. Oct. 21 Schlumberger: Q3 Results 2021 (13:00 CET)
  1. Oct. 21 GALP Energia: Q3 Results 2021 (07:50 CET)
  1. Oct. 21 Saipem: Q3 Results 2021
    Equinor: Equinor Q3 Results 2021 (06:45 CET)
    Aker Solutions: Q3 Results 2021 (07:00 CET)
    Neste: Q3 Results 2021 (08:00 CET)
    Hess: Q3 Earnings 2021 (12:00 CET)
  2. Oct. 21 Saipem: Capital Markets Day
    Aker BP: Q3 Results 2021 (07:00 CET)
    Hunting Plc: Q3 Trading Statement 2021 (08:00 CET)
    Repsol: Q3 Results 2021 (08:00 CET)
    Royal Dutch: Royal Dutch Shell Q3 Results 2021 (08:00 CET)
    Total Energies: Total Q3 Results 2021 (08:30 CET)
    GTT: Q3 Results 2021 (17:45 CET)
  3. Oct. 21 Eni: ENI Q3 Results 2021
    Lundin Energy: Q3 Results 2021 (07:30 CET)
    OMV: Q3 Results 2021 (07:30 CET)

Exane BNP Paribas Research

Reabold Resources

20 OCTOBER 2021

page 4

Prepared solely for James Crothers. Not to be distributed anywhere. Strictly for personal use.

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GENEVA

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All Exane research documents are available to all clients simultaneously on the Exane website (http://cube.exane.com). Most published research is also available via third-party aggregators such as Bloomberg, Refinitiv, Factset and Capital IQ. Exane is not responsible for the redistribution of research by third-party aggregators.

Important notice: Please refer to our complete disclosure notice and conflict of interest policy available on http://cube.exane.com/compliance

This research is produced by one or more of EXANE SA (including Exane SA branches, based in the United Kingdom, in the European Economic Area and in Switzerland) and Exane Inc (collectively referred to as "EXANE"). EXANE SA is authorized by the Autorité de Contrôle Prudentiel et de Résolution and regulated by the Autorité des Marchés Financiers ("AMF"). Exane SA branches based in the European Economic Area are authorized and regulated by ACPR and by the local relevant regulator. Exane SA Geneva Branch is authorized and regulated by the Swiss Financial Market Supervisory Authority ("FINMA"). Exane SA, London Branch is deemed authorised and regulated by the Financial Conduct Authority. Details of the Financial Services Contracts Regime, which allows EEA-based firms to operate in the UK for a limited period to carry on activities which are necessary for the performance of pre-existing contracts, are available on the Financial Conduct Authority's website.

Exane Inc is registered and regulated by the Financial Industry Regulatory Authority ("FINRA"). In accordance with the requirements of Financial Conduct Authority COBS 12.2.3R and associated guidance, of article 313-20 of the AMF Règlement Général, and of FINRA Rule 2241, Exane's policy for managing conflicts of interest in relation to investment research is published on Exane's web site (cube.exane.com). Exane also follows the guidelines described in the code of conduct of the Association Francaise des Entreprises d'Investissement ("AFEI") on managing conflicts of interest in the field of investment research. This code of conduct is available on Exane's web site (http://cube.exane.com).

This research is solely for the private information of the recipients. All information contained in this research report has been compiled from sources believed to be reliable. However, no representation or warranty, express or implied, is made with respect to the completeness or accuracy of its contents, and it is not to be relied upon as such. Opinions contained in this research report represent Exane's current opinions on the date of the report only. Exane is not soliciting an action based upon it, and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of any offer to buy.

While Exane endeavours to update its research reports from time to time, there may be legal and/or other reasons why Exane cannot do so and, accordingly, Exane disclaims any obligation to do so.As Exane provides ongoing coverage of this company, this report may not be the most recently published or contain the most up- to-date information. Please refer to https://cube.exane.com/sponsored/hometo ensure that you are accessing the most recent report relating to this company.

This report is provided solely for the information of professional investors who are expected to make their own investment decisions without undue reliance on this report and Exane accepts no liability whatsoever for any direct or consequential loss arising from any use of this report or its contents.

This report may not be reproduced, distributed or published by any recipient for any purpose. Any United States person wishing to obtain further information or to effect a transaction in any security discussed in this report should do so only through Exane Inc., which has distributed this report in the United States and, subject to the above, accepts responsibility for its contents.

BNP PARIBAS has acquired VERNER INVESTISSEMENTS, the parent company of Exane. VERNER INVESTISSEMENTS is wholly owned and controlled by BNP PARIBAS, which holds 100% of the share capital and voting rights of VERNER INVESTISSEMENTS.

Prepared solely for James Crothers. Not to be distributed anywhere. Strictly for personal use.

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Reabold Resources plc published this content on 22 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2021 10:43:06 UTC.


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Financials
Sales 2021 2,57 M 3,44 M 3,44 M
Net income 2021 -2,84 M -3,81 M -3,81 M
Net cash 2021 2,44 M 3,26 M 3,26 M
P/E ratio 2021 0,49x
Yield 2021 -
Capitalization 21,4 M 28,8 M 28,7 M
EV / Sales 2021 7,40x
EV / Sales 2022 7,98x
Nbr of Employees 3
Free-Float 92,2%
Chart REABOLD RESOURCES PLC
Duration : Period :
Reabold Resources Plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends REABOLD RESOURCES PLC
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 2
Last Close Price 0,24 GBX
Average target price 1,11 GBX
Spread / Average Target 360%
EPS Revisions
Managers and Directors
Sachin Oza Co-Chief Executive Officer
Stephen A. Williams Co-Chief Executive Officer & Executive Director
Jeremy Samuel Edelman Non-Executive Chairman
Marcos Mozetic Independent Non-Executive Director
Michael Craig Felton Independent Non-Executive Director
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