Reabold Resources : Interim Results 30 June 2021

30 September 2021

REABOLD RESOURCES PLC

("Reabold" or "the Company")

Unaudited Interim Results for six months ended 30 June 2021

Reabold Resources plc (AIM: RBD), the investor in upstream oil and gas projects, announces its unaudited interim results for the six months ended 30 June 2021.

For further information, contact:
Reabold Resources plc	c/o Camarco
Sachin Oza	[phone]
Stephen Williams
Strand Hanson Limited - Nominated & Financial Adviser	[phone]
James Spinney
Rory Murphy
James Dance
Stifel Nicolaus Europe Limited - Joint Broker	[phone]
Callum Stewart
Simon Mensley
Ashton Clanfield
Panmure Gordon - Joint Broker	[phone]
Hugh Rich
Nick Lovering
Camarco
James Crothers	[phone]
Rebecca Waterworth
Billy Clegg

CHAIRMAN'S STATEMENT

The Board is pleased to report on the progress in the Company's investment portfolio in the six months ended 30 June 2021, and post-period end.

Highlights:

• Further investment of £1.0 million into Corallian Energy Limited ("Corallian") by way of a Convertible Loan to fund the submission of a draft Field Development Plan for the Victory gas field, planned to occur before the end of 2021. Subsequently, the Company sold 50% of its Convertible Loan for net proceeds of £0.5 million to a group of strategic investors.
• Reabold acquired an additional 13.12% of Corallian shares from existing Corallian shareholders, in exchange for the issue of 468,994,086 new Reabold shares, resulting in the Company now owning 49.99% of Corallian, thereby increasing its interest in the Corallian owned Victory gas discovery.
• West Newton B-1Z completion and testing operations commenced, targeting hydrocarbons in the conventional Kirkham Abbey Formation reservoir, which is key for the future development of the West

Newton licence and, in particular, for indicating the optimal location for the drilling of the horizontal B-2 well.

• Completion of Environmental Baseline Survey at Victory gas discovery.
• The 18 month extension of the Parta Exploration Licence in Romania, held 100% by Danube Petroleum Limited, for the current exploration phase until 3 December 2022.
• Oversubscribed placing at a premium to the prevailing market price to raise £7.5million, supported by key existing and new institutional investors.

Highlights - Post-Period end:

• Testing of the B-1Z well to date has yielded significant information to increase the understanding of the West Newton field, with both gas and liquid hydrocarbons recovered to surface, which is consistent with information gathered from the A site wells and further evidence that there is a substantial hydrocarbon column and resource in place.

Rathlin Energy (UK) Limited and PEDL183

The Company holds a 59.5% interest in Rathlin Energy (UK) Limited ("Rathlin"), the operator and 66.67% equity interest holder in PEDL183 licence, onshore UK, which contains the significant West Newton field, potentially the largest hydrocarbon discovery onshore UK since 1973. In addition, the Company holds a direct 16.665% interest in PEDL 183.

During the reporting period and subsequently, the West Newton B-1Z completion and testing operations commenced, targeting hydrocarbons in the conventional Kirkham Abbey Formation reservoir, which is key for the future development of the West Newton licence and, in particular, for indicating the optimal location for the drilling of the horizontal B-2 well.

Testing of the B-1Z well to date has yielded significant information to increase the understanding of the West Newton field. Both gas and liquid hydrocarbons have been recovered to surface, which is consistent with information gathered from the A site wells and further evidence that there is a substantial hydrocarbon column and resource in place.

As expected, the reservoir has demonstrated a dual permeability system, with natural fractures alongside a lower permeability matrix. Completion fluids were injected into the formation at a rate constrained by the pumps on site at 5.7 barrels per minute (8,208 barrels per day).

As announced on 31 August 2021, clear signs of reservoir damage have been observed near wellbore areas, which was expected to be preventing more significant flow at the time of testing. Accordingly, a measurable flow of hydrocarbons has not yet been achieved.

The B-1Z well has therefore been suspended with pressure gauges monitoring pressure build up in the well bore, with a view to further testing following the results at the A-2 well.

The testing equipment was successfully moved to the West Newton A site, and the previously interrupted test at the A-2 well restarted. Reabold remains fully funded for its intended work programme.

Corallian

The Company holds a 49.99% interest in Corallian, following completion of the acquisition of an additional 13.12% interest during the reporting period.

Corallian holds a 100% interest in the Victory gas discovery in block 207/1a, located in the north-west region of the Shetland Isles. The Victory project is considered a low-risk gas development which has been fully appraised and

requires no additional pre-development drilling. SLR Consulting estimates that Victory has 2C contingent resources of 157 BCF; valuations (NPV10) of Victory currently range from circa £85 million (based on current gas price forecasts of 42.5p/therm) to circa £146 million (based on historical average gas price and base case valuation of 50p/therm).

On 22 February 2021, the Company announced a further investment of £1,000,000 into Corallian, by way of a Convertible Loan, to fund the submission of a draft Field Development Plan for the Victory gas field before the end of 2021. The Convertible Loan, including interest at a rate of 15% per annum (accruing daily), will convert into new ordinary shares in Corallian within 21 months from the date of entering into the instrument. If, during this period, Corallian is acquired, undertakes a material disposal of assets, an initial public offering or a reverse takeover, (each, a "corporate action"), where the relevant valuation is greater than £3.20 per share, the Convertible Loan will convert at £3.20 per share. If the relevant valuation is below £3.20 per share, then the Convertible Loan will convert at a price equal to the relevant valuation. If no such corporate action has taken place within 21 months, the Convertible Loan will automatically convert at a price of £1.50 per Corallian share. Subsequently, on 3 March 2021, the Company announced that it sold 50 % of its Convertible Loan to Corallian for net proceeds of £500,000 to a group of strategic investors.

In May 2021, Reabold completed a conditional offer to acquire up to an additional 13.12% of Corallian shares from existing Corallian shareholders, in exchange for new Reabold shares, at a ratio of 474 Reabold shares for 1 Corallian share (the "Offer"). The Offer was oversubscribed, and all conditions precedent were fulfilled. As a result, Reabold acquired 989,439 Corallian shares, equivalent to 13.12 % of Corallian from existing Corallian shareholders, and issued 468,994,086 new Reabold shares as consideration. Consequently, Reabold's equity interest in Corallian increased to 49.99%.

During the reporting period, Corallian successfully completed the Environment Baseline Survey ("EBS") for the Victory project. The EBS is a key milestone for the submission of a draft Field Development Plan ("FDP") to the UK's Oil and Gas Authority ("OGA"), planned for the end of 2021. Reabold provided the funding to Corallian for the EBS by way of the Convertible Loan.

Data acquisition for the Victory EBS was successfully completed on 23 June 2021, with the survey completed within the budget estimate and with zero health and safety incidents. Data acquired include side-scan sonar, multibeam echosounder, seabed sediment samples, and video and camera stills over the proposed project sites. This data will be used to complete an Environmental Impact Assessment and ultimately an Environmental Statement for the Victory project. Corallian management expect data and sample processing and interpretation will take approximately four months and advise that the Environmental Statement remains on schedule to be submitted to the relevant UK authorities, together with the Victory draft FDP, by the end of 2021. Additional updates will be provided during the second half of the year as further progress is made towards FDP submission.

Danube Petroleum Limited

Reabold has a 50.8% equity position in Danube Petroleum Limited ("Danube"), with ASX listed ADX Energy Ltd ("ADX") holding the remaining 49.2%. has a 100 % interest in the Parta licence in Romania, which includes the IMIC- 1 discovery and the IMIC-2 prospect.

In June 2021, ADX announced an extension of the Parta Exploration Licence ("Parta") in Romania, with the Romanian National Agency for Mineral Resources approving an 18-month extension for Parta for the current exploration phase until 3 December 2022.

Reabold California

The Company, through its wholly-owned subsidiary Reabold California LLC, has interests in oil and gas leases in California with low-cost production and multiple near-term,high-impact drilling opportunities, with low drilling costs and a fast path to monetisation. The leases are operated by Integrity Management Solutions, a Californian operating company that leads direct operational decisions pertaining to the leases.

Production across Reabold's California licences, being West Brentwood and Monroe Swell, in which Reabold has a 50% working interest, for the period from 1 January 2021 to 30 June 2021 was 25,212 (gross) and 12,606 (net) barrels of oil equivalent ("boe"). Reabold's net revenue generated from the sales of hydrocarbons in California over the period was US$777,000 (US$622,000 net of royalties). This equates to a realised price of US$60.6/boe (US$48.5/boe net of royalties). The estimated cash operating cost was approximately US$36.6/boe.

		Unit			H1 2021			H1 2020			Total 2020
Total Production		boe*	25,212	37,426	67,780
Reabold's 50% share of production		boe*	12,606	18,713	33,890
Reabold's gross revenue		US$	$777,000	$718,000	$1,328,000
Reabold's revenue net of royalties		US$	$622,000	$575,000	$1,063,000
Realised price per boe		US$	$60.6		$38.1		$38.4
Realised price per boe net of royalties		US$	$48.5		$30.5		$30.7
Cash operating cost per boe		US$	$36.6		$14.4		$18.5

* gas equivalence based on 6,000 scf/bbl

The significant increase in in oil prices during the period was offset by lower production due to workover of wells and bringing enhanced storage infrastructure online. Operating costs per barrel were higher due to significantly increased water disposal costs, which will be reduced when the water disposal wells are brought online.

Funding

On 28 January 2021, the Company announced that it had raised £7.5 million in gross proceeds by way of an oversubscribed placing of 890,909,093 new ordinary Reabold shares to new and existing institutional investors by Stifel, and a total of 472,727,270 new ordinary Reabold shares had been being subscribed for by certain Directors and institutional investors, at a price of 0.55 pence per share. The net proceeds of the fundraise were to progress activity across our portfolio in 2021 and working capital.

Financial Review

The Group loss for the 6 months ended 30 June 2021 was £1,384,000, compared to a loss of £508,000 for the corresponding period in 2020, reflecting increased administration expenses during the reporting period, and the positive exchange rate movement in the 2020 comparative period.

During the period, production from the Group's California assets generated revenues of £560,000 (2020: £570,000)

and a gross loss of £7,000 (2020: £80,000), reflecting higher operating costs due to significantly increased water disposal costs, as noted above.

For the six months ended 30 June 2021, the Group net cash used in operating activities was £550,000 (2020: net used of £567,000). The net cash outflows from investing activities increased from £227,000 for the 6 months ending 30 June 2020 to £1,099,000 for the 6 months ended 30 June 2021, reflecting the Company's investment in the Convertible Loan and exploration and evaluation expenditure in respect to the Company's direct interest in West Newton. During the period, the Group raised £6,881,000 in net funds from share placements (2020: £Nil).

Cash and cash equivalents as at 30 June 2021 was £6,398,000 (2020: £5,485,000).

The Group total net assets and net current assets as at 30 June 2021 were £47,654,000 (2020: £39,826,000) and

£6,640,000 (2020: £5,961,000) respectively.

Outlook

Having secured funding to significantly progress activity across our portfolio in 2021, we look forward to an exciting year ahead and beyond.

This report was approved by the Board and signed on its behalf:

Jeremy Edelman

Chairman

30 September 2021