Reabold Resources PLC (AIM:RBD) told investors it has converted £510,236 of convertible loan notes, including accrued interest.
At a conversion price of £14,173.23 per share, it saw 36 ordinary shares of LNEnergy Limited issued – and, as a result, Reabold now holds approximately 3.33% of LNEnergy's enlarged share capital.
LNEnergy holds a 20% stake in LNEnergy S.R.L, an Italian company that in turn owns a 90% interest in the Colle Santo gas field concession.
The LNEnergy vehicle that Reabold holds has the option to acquire the remaining 80% of the Italian company for US$11 million before 1 February 2025.
Colle Santo is seen as a significant resource, with an estimated 65 billion cubic feet (Bcf) of 2P reserves. Two production wells have already been drilled and flow-tested at Colle Santo, making the field development ready.
The field could generate gross post-tax free cash flow of between €11 million and €12 million annually, according to LNEnergy estimates.