TIDMRBD
RNS Number : 3930C
Reabold Resources PLC
17 June 2019
17 June 2019
Reabold Resources Plc
("Reabold" or the "Company")
Discovery at West Newton, Potentially Largest UK Onshore Gas
Field
Highlights:
-- Successful appraisal of onshore UK discovery, with both gas
and liquid hydrocarbon volumes encountered
-- Preliminary data suggests West Newton 2C Contingent
Resources* is at least the pre-drill estimate of 189 Bcf (Billion
Cubic Feet of Gas), the equivalent of 31.3mmbo (million barrels of
oil)
-- West Newton is potentially the largest UK onshore gas field
and potentially the largest hydrocarbon discovery onshore UK since
1973, subject to further testing
-- West Newton is near Hull where there is an abundance of production infrastructure
-- Permitting in place for Extended Well Test planned for Q3 2019
-- Existing pre-Drill NPV (Net present value) for West Newton of $247 million*
-- Deeper exploration target in the Cadeby formation encountered
hydrocarbon shows with an oil saturated core
*Connaught Oil and Gas Limited ("Connaught") management
estimate. Connaught has a 35 per cent. interest in Rathlin Energy
(UK) Ltd ("Rathlin"), operator of the West Newton A-2 appraisal
well.
Sachin Oza, Co-CEO of Reabold, commented:
"We are delighted by today's results confirming that West Newton
could potentially be the UK's largest onshore gas field. The
results of the well have exceeded our expectations and have also
shown a significant liquid hydrocarbon volume which has increased
our excitement and the future value of the field materially.
"From its onshore location near Hull and with nearby
infrastructure available, we anticipate that West Newton can
provide material volumes of hydrocarbons for the UK's energy needs
at low cost and in the near term.
"Success in a project of this scale would undoubtedly be
transformational for Reabold and its investors. We look forward to
the well test in the coming weeks and potentially generating early
cash flow from the testing programme."
Reabold, the investor in pre-cash flow upstream oil and gas
projects, is pleased to announce positive results at the West
Newton A-2 appraisal well, located within PEDL 183 in Humberside,
onshore UK. Reabold holds a 24 per cent. economic interest in this
licence via its 36 per cent. holding in Rathlin, operator of the
well.
The West Newton A-2 well was spudded on 26 April 2019 and, on 9
June 2019, reached a total depth (TD) of 2061 metres. 28 metres of
core has been successfully extracted from the primary target
Kirkham Abbey formation and all planned logging operations have
been successfully completed.
A net 65-metre hydrocarbon saturated interval has been
encountered from within the Kirkham Abbey formation indicating a
substantial hydrocarbon accumulation, including a significant
liquids component.
Drilling operations have concluded and production casing has
been run in preparation for testing of this interval, for which
planning consent has already been received. This test will
determine flow rates and inform the forward work programme. Testing
operations are expected to commence Q3 2019.
The initial petrophysical data obtained from the West Newton A-2
well correlates positively versus the results from the West Newton
A-1 well. Prior to the drilling of the A-2 well, a Competent
Person's Report compiled by Deloitte gave a Best Estimate
Contingent Resource of 189 Bcfe of gas equivalent for the West
Newton discovery. Volume expectations will be updated following
further core and log analysis.
The well also encountered hydrocarbon shows within the secondary
target Cadeby formation with an oil saturated core. This is highly
encouraging and the formation is planned to be intersected from the
West Newton B location, where optimal reservoir development is
expected.
All data is subject to confirmation from the well test.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
ENDS
For further information please contact:
Reabold Resources plc c/o Camarco
Stephen Williams +44 (0) 20 3781 8331
Sachin Oza
Whitman Howard Limited - Joint Broker
Nick Lovering +44 (0) 20 7659
Grant Barker 1234
Strand Hanson Limited (Nominated and Financial
Adviser)
Rory Murphy
James Spinney
James Dance +44 (0)20 7409 3494
Camarco
James Crothers
Ollie Head
Billy Clegg +44 (0) 20 3781 8331
Turner Pope Investments (TPI) Ltd - Joint
Broker
Andy Thacker +44 (0) 20 3621 4120
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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