Reabold Resources PLC Well commencement at West Newton, onshore UK (1714X)
April 26 2019 - 2:01AM
UK Regulatory
TIDMRBD
RNS Number : 1714X
Reabold Resources PLC
26 April 2019
26 April 2019
Reabold Resources Plc
("Reabold" or the "Company")
Well commencement at West Newton, onshore UK
Reabold is pleased to announce that drilling operations have
commenced at the West Newton A-2 appraisal well, onshore UK.
Drilling operations will first consist of one well drilling into
the Kirkham Abbey Formation gas discovery, de-risking 189 BCFe
(Billion Cubic Feet equivalent) Contingent Resources, before then
targeting the deeper Cadeby Formation oil exploration target which
has gross Prospective Resources of 79.1Mmboe (million barrels of
oil equivalent).
Pre-drill estimates ascribe 72* per cent. chance of success and
a gross NPV of $247** million for the Kirkham Abbey Formation
discovery and a 24* per cent. chance of success and a gross NPV of
$850** million for the Cadeby Formation prospect.
In a success case, West Newton offers a fast pathway to
monetisation through its proximity to existing gas pipelines and
infrastructure in the local area.
The West Newton A-2 appraisal well will be drilled to a total
depth of approximately 2,061 metres below ground level and it is
expected to take circa 40 days to complete drilling operations.
Reabold has a 37.08 per cent. interest in Rathlin Energy (UK)
Limited ("Rathlin"), which is the operator and has a 66.67 per
cent. equity interest in the UK onshore licence PEDL183, which
contains the West Newton A-1 discovery, drilled by Rathlin in
2014.
In 2017, Deloitte LLP prepared a CPR for Connaught Oil & Gas
Limited ("Connaught") (35 per cent. shareholding in Rathlin)
incorporating both the data from the West Newton discovery well and
subsequently acquired 3D seismic data over the field. The Deloitte
CPR assigns Contingent Resource to the Kirkham Abbey gas formation
and is the source of management volumetric assessments.
Stephen Williams, Co-CEO of Reabold, commented:
"In our view, West Newton is extremely attractive, due to both
its scale and its location. The West Newton A-1 discovery suggests
that we may have one of the largest onshore UK gas fields and we
are delighted to have been able to fund the appraisal well that can
potentially prove up its considerable value. If successful, West
Newton's close proximity to abundant infrastructure and demand
centres mean that it could be an important near-term addition to
supplying UK energy demand."
"With deeper oil potential and a high chance of success, this is
an exciting and strategic asset for Reabold and we look forward to
updating shareholders on the result of the well in due course."
*Connaught management's estimates
**Connaught management's estimate (Note: this estimate is based
on the economic evaluations run by Deloitte for the CPR, updated by
Connaught to reflect the most recent price forecasts provided by
Deloitte).
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 3757 4980
Sachin Oza
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 3757 4980
Whitman Howard Limited - Joint Broker
Nick Lovering
Grant Barker +44 (0) 20 7659 1234
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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