Reabold Resources ‘Project Wallace’

by Dan Levi · 7 October, 2019

Tip: I often see and hear this: "Know The Game". Let me tell you something, anyone who consistently espouses this shite is 'at the bollox'. Investing/trading at any level isn't a 'game'. It's deadly serious. Those that tweet, podcast or write such shite are in the main Pump & Dumpers, who'll say and do anything to manipulate small cap' micro stocks. Using a whole host of anonymous twitter, BB accounts, DMs, Private chat, phone calls and email groups. It's easy to ramp telling 'porky pies' about crap companies you're taking kickbacks from or dumping shares into the ramp. Silence is better than bullshit.

What isn't easy is getting your hands on quality information. Base your strategy on well sourced information. Remember losing several thousand pounds for most of us has financial consequences. Rather than know the 'game' 'Know Their Game'. Here endeth the lesson...

There’s no a hard & fast rule, in the not so glittery world of financial commentary, but occasionally one has to make a ‘judgement call’ in the interests of transparency for shareholders, traders and investors who’re all too often kept in the dark, when really companies should be reaching out to their shareholder base and the wider market, instead of skulking around behind the ‘corporate curtain’, raising cash.

Some financial placings actually have merit and one, if given the chance, can see the raison d’être or not. Which brings me on nicely to “Project Wallace”. Documents now in my possession confirm that Reabold Resources (LON: RBD) basically think that they’ve hit the ‘Oil Jackpot’ at the West Newton drill site.

Project Wallace is the corporate (Stifel) Institutional overview/pitch of all licences held by Reabold, with summary’s pertaining to each of their licence holdings: Reabold California (USA), Rathlin/West Newton (UK), Danube Romania, Corallian (UK)

For the purposes of this blog post I’m specifically concentrating on the West Newton/Rathlin transaction that can be summed up as thus: “$29m investment for $274.4m of additional value” which doesn’t take into account the potential value/oil from the Cadeby oil play which has a further value of $850m NPV (gross). The proposed placing price was 1.2p. That may have changed post the ShareProphets scoop and RNS confirmation. We’ll know soon enough. For those of you who wish to read the complete unabridged Stifel overview there’s a ‘Click Me’ button at the bottom of this post.

It’s glaringly apparent that RBD and their partners believe that West Newton is a major onshore oil/gas discovery that will flow oil & gas and could net well in excess of $1,000,000,000 at $11.50c net back based upon as yet the unpublished CPR and the volume-metrics that will soon be released. The Extended Well Test is due Q4 2019, which means West Newton is gearing up, news should start to drop next few weeks or so….

To me it looks to be the ‘real deal’ based upon what’s been going on behind closed doors however ‘Caveat Emptor’ always applies. It’s not in the bag until it’s in the bag. RBD will be fully funded with an increase in West Newton which is basically their crown jewels. UJO are already fully paid up for the EWT and have £2,600,000 cash at hand, they’ll probably sell out after the oil/gas flows. It’s known that Bramhill (CEO UJO) has consistently rebuffed offers of financial backing from several institutions.

So, how much O&G is there? We’ll get an idea once the CPR/Volume metrics are released which should come pre EWT. A 65 metre hydrocarbon column in the Kirkham Abbey is in itself a company maker. Add in the Cadeby and it’s probably the best O&G play on the London Stock Exchange. Especially since all the Major holders have all basically ‘sold off’. That brake has gone. Expect TR1s with the inevitable deceitful ones double speaking trying to talk both companies down. Par for the course, i’m afraid.

Once oil/gas flows at West Newton then RBD could hit in excess of 5p and UJO anything up too 2p. Of course it’ll be a bumpy ride with many peaks and troughs but that’s again ‘par for the course’ in the Oil Sector. So, now we ALL know the facts on West Newton and the proverbial playing field has been levelled. Courtesy of Dan! The Man! Whose got no hair but doesn’t care LOL!