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Reabold Resources PLC Operational Update at West Newton, onshore UK

Reabold Resources PLC (LON:RBD), the AIM investing company which focusses on investments in pre-cash flow upstream oil and gas projects, today provided an update on operations at the West Newton A-2 appraisal well, located within the PEDL 183 licence in Humberside, onshore UK. Reabold holds a 24 per cent. economic interest in the licence via its 36 per cent. holding in Rathlin Energy (UK) Ltd, operator of the well.

Highlights:

·      Rig mobilised for the perforation/completion of the West Newton A-2 well

·      Well test anticipated to run over 4-8 weeks

·      Permissions also in place for the construction of West Newton B site, as well as for the drilling and testing of two wells in that location

On 17 June 2019, Reabold announced the successful appraisal of a discovery at West Newton, with both gas and liquid hydrocarbon volumes encountered. The Company is pleased to announce that Rathlin has today mobilised a service rig and associated testing equipment to the West Newton A site for perforation/completion of a select interval within the Kirkham Abbey conventional reservoir. Once the well test operations have commenced, they are anticipated to run over the next 4-8 weeks. 

The information gathered during the well test operations will aid the evaluation of the Kirkham Abbey reservoir and help inform any further work programme in the area. Rathlin has been granted planning permission and EA permits for the drilling and testing of two wells at the West Newton A site. Permissions are also in place for the construction of the West Newton B site and the drilling and testing of two wells in that location.

Preliminary data from a Competent Person’s Report compiled by Deloitte for Connaught Oil and Gas Limited (“Connaught”) suggests that 2C Contingent Resources at West Newton are at least the pre-drill estimate of 189 Bcf (Billion Cubic Feet of Gas)*, the equivalent of 31.3 mmbo (million barrels of oil).

Sachin Oza, co-CEO of Reabold Resources, commented:

“We are excited by the progress being made at West Newton, which clearly has significant potential and could be transformative for Reabold. We are also delighted to see permits in place for follow-on wells, which we believe are integral to realising the full potential of West Newton. We look forward to updating shareholders on the results of the well test in due course, along with updates from across the rest of our portfolio.”    

* 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. Connaught was previously the 100 per cent. equity holder in Rathlin, which was in turn the 100 per cent. holder of the PEDL183 licence.