Reabold has participated in the second tranche of Corallian's recently completed sixth round of fundraising. Reabold subscribed for 47,727 ordinary shares in Corallian at a price of £2.20 per share, being Reabold's pro rata share at 34.9%. Corallian will use the proceeds to prepare for a planned IPO early in 2H 2020, and to complete the work required to finalize U.K. North Sea well locations for both the Unst prospect in the Viking Graben and the Dunrobin prospect in the Inner Moray Firth.
The Unst gas prospect, in licence P2464, has an unrisked Pmean prospective resource estimated by Corallian of 68 billion cu ft of gas in the Eocene Frigg sandstone prospect with seismic amplitude support, potentially analogous to that at the nearby Nuggets Fields. Corallian holds a 100% interest in the license. The Dunrobin prospect, in licence P2478, has an unrisked Pmean prospective resource estimated by Corallian of 187 million boe in the Beatrice Formation and Dunrobin Bay Group sandstones. Corallian holds a 45% interest in the license and is operator during the initial phase of the license. A farmout process for the Unst and Dunrobin wells will be launched by Corallian at the PROSPEX industry event in December 2019.
Progress is being made in discussions on the farmout of a further interest in the planned Curlew-A well in licence P2396. The well is planned to be an appraisal of the Shell 1977 Curlew-A Tertiary oil discovery. A competent person's report for the discovery has been completed by Schlumberger who estimates 2C resources of 39 million boe in Cromarty and Odin Tertiary aged sandstones. In addition, Corallian estimates prospective resources of 22 million bbl of oil in the Forties sandstone, and 8 million boe in the Chalk. The rig site survey for the Curlew-A appraisal well was completed in August 2019. Corallian holds a 90% interest in the licence. Talon Petroleum holds a 10% interest (paying 15% of the cost of the Curlew-A well capped at a gross well cost of £12 million).
Corallian has submitted applications in the 32nd Seaward Licensing Round of the OGA. Warrants have been granted to all shareholders on the basis of 1 warrant for every 4 shares held. These can be exercised up to 30 working days following any offer of a licence that may be made by the OGA to Corallian next summer, at an exercise price of £2.20 per warrant share. For the year ended October 31, 2018, Corallian reported net assets of £6,233,609 and a loss for the year of £422,850.