Reabold Resources PLC West Newton Operations Update (1139K)
31 August 2021 - 4:00PM
UK Regulatory
TIDMRBD
RNS Number : 1139K
Reabold Resources PLC
31 August 2021
31 August 2021
Reabold Resources plc
("Reabold" or the "Company")
West Newton Operations Update
Reabold, the investor in upstream oil and gas projects, is
pleased to provide an update on activities at West Newton, operated
by Rathlin Energy (UK) Limited ("Rathlin").
Reabold holds a ca. 56 per cent. economic interest in West
Newton via its ca. 59 per cent. shareholding in Rathlin, which, in
turn, has a 66.67 per cent. interest in PEDL183. In addition,
Reabold has a 16.665 per cent. direct licence interest in
PEDL183.
Testing of the B-1Z well to date has yielded significant
information to help understand 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 we have 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).
However, the Kirkham Abbey reservoir appears to be sensitive to
the drilling and completion fluids. We see clear signs of reservoir
damage in near wellbore areas. This is probably preventing more
significant flow at this time. Testing to date has not yet returned
all the completion fluids injected into the formation and a
measurable flow of hydrocarbons has not yet been achieved.
The B-1Z well will therefore be 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 will now move to the West Newton A site,
where we will re-start the previously interrupted test at the A-2
well.
Reabold remains fully funded for its intended work
programme.
Stephen Williams, co-CEO of Reabold, commented:
"Testing at West Newton continues to provide valuable data to
inform how to best develop this extremely significant oil and gas
resource. Evidence of permeability and the extensive hydrocarbon
column, in addition to the returns of gas and oil to surface, are
extremely encouraging. Suspected formation damage at the B-1Z well
also forms a key input into the development methodology for the
West Newton field. We are fortunate in being able to progress the
A-2 test whilst we undergo the pressure build up at B-1Z, and look
forward to continuing to better understand how to optimally exploit
this unique UK oil and gas resource.
Qualified Person's Statement
Pursuant to the requirements of the AIM Rules - Note for Mining
and Oil and Gas Companies, the technical information contained in
this announcement has been reviewed by Dr Jeremy Jarvis as a
Qualified Person. Jeremy has more than 35 years' experience as a
petroleum geologist, holds a BSc in Geology from the University of
Dundee and a Ph.D. from Imperial College, University of London. He
is a member of the American Association of Petroleum Geologists and
the Petroleum Exploration Society of Great Britain.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019.
For further information, contact:
Reabold Resources plc c/o Camarco
Sachin Oza +44 (0) 20 3757 4980
Stephen Williams
Strand Hanson Limited - Nomad & Financial
Adviser
James Spinney
Rory Murphy
James Dance +44 (0) 20 7409 3494
Stifel Nicolaus Europe Limited - Joint
Broker
Callum Stewart
Simon Mensley +44 (0) 20 7710 7600
Ashton Clanfield
Panmure Gordon - Joint Broker
Hugh Rich
Nick Lovering +44 (0) 207 886 2733
Camarco
James Crothers
Billy Clegg
Rebecca Waterworth +44 (0) 20 3757 4980
Notes to Editors
Reabold Resources plc is an investing company investing in the
exploration and production ("E&P") sector. The Company's
investing policy is to acquire direct and indirect interests in
exploration and producing projects and assets in the natural
resources sector, and consideration is currently given to
investment opportunities anywhere in the world.
As an investor in upstream oil & gas projects, Reabold aims
to create value from each project by investing in undervalued,
low-risk, near-term upstream oil & gas projects and by
identifying a clear exit plan prior to investment.
Reabold's long term strategy is to re-invest capital made
through its investments into larger projects in order to grow the
Company. Reabold aims to gain exposure to assets with limited
downside and high potential upside, capitalising on the value
created between the entry stage and exit point of its projects. The
Company invests in projects that have limited correlation to the
oil price.
Reabold has a highly-experienced management team, who possess
the necessary background, knowledge and contacts to carry out the
Company's strategy.
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