Reabold Resources (AIM:RBD)  said it has been “highly encouraged” by the success it has seen across its oil and gas projects in full year results for the year ended 31 December 2019. 
 
The AIM-listed firm said it had increased production from its California assets, generating revenues of £1.4m (2018: £194,000) and gross profit of £596,000 (2018: £111,000).  
 
However, the group’s net loss for the period increased to £4.2m (2018: loss of £1.9m),mostly due to the company's share of losses from associates of £2.95m (2018: loss of £0.16m).  
 
Cash outflow increased considerably from £9.3m in 2018 to £24.9m for 2019, reflecting the significant increase in investment activities for the period in its Rathlin, Danube and Corallian assets, as well as the funding of activities in California.  
 
Reabold raised an aggregate of £26.6m, before expenses, at an average price of 0.92p during the period, a significant increase in the amount raised in 2018 of £12.6m, before expenses, at 0.68p.  
 
This fundraising activity ensured the group reported a healthy cash balance as at 31 December 2019 of £6.7m (2018: £7.11m) and currently maintains around £5.6m in cash beyond the cash invested into the operating entities to fund the 2020 work programme.  
 
Reabold said it is, alongside its investee companies, financially robust and in a position to potentially take advantage of acquisition and investment opportunities that may arise. 
 
Shares in Reabold Resources closed at 0.67p on Wednesday afternoon. 

"We are highly encouraged by the success we have had so far in the implementation of our strategy to invest in low-risk, high impact, upstream oil and gas projects,” said Stephen Williams and Sachin Oza, co-CEOs of Reabold. 
 
Williams and Oza noted the appraisal drilling campaigns at the Danube, Corallian and Rathlin prospects, the further drilling programmes in California, and a number of other projects under review as reflecting “an exciting 2020 and beyond” for investors. 
 
While the group described the impact of Covid-19 as ‘undeniably dramatic’, it highlighted its investment strategy directed at undervalued assets which focuses on driving profitability. 
 
Reabold said this was a ‘crucial’ aspect of the company since undervalued assets ‘deliver profitably under any reasonable oil and gas price assumption, are at the lower end of the industry cost curve and will be competitive against other sources of hydrocarbons.’ 
 
The group said its portfolio ‘is well positioned’ to not only survive through the Covid related downturn, but to continue to progress and expectedly thrive throughout 2020 and beyond.’ 
 
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