Reabold Resources and Union Jack Oil advance West Newton licence
The oil & gas exploration firm said that the operator, Rathlin Energy, in which Reabold holds a 59% equity interest in, designed an alternative test to recommence the EWT that is better suited to evaluate the significant oil column encountered at the A-2 well.
The EWT operations were originally paused in late August 2019 in order to replace the original evaluation which was to test what was expected to be predominantly gas.
Having filed its revised plan to the Environment Agency, Rathlin now awaits approval before the EWT can recommence with its re-calibrated plan.
“Comfort can be gained by the fact that no objections were raised by the HSE (Health and Safety Executive) during its review. We expect that the EA determination will require 4 - 6 weeks to facilitate,” said David Bramhill, Executive Chairman of which holds a 16.665% interest in the PEDL183 licence.
Reabold Resources was trading 3.79% lower at 0.635p during Thursday trading.
Meanwhile, operations at the West Newton B-1 well are expected to commence during the second quarter of 2020, with Rathlin fully funding these operations.
The process of commencing drilling operations at the West Newton B site is independent of that EWT at West Newton A-2, this morning's statement highlighted.
Specifically, the drilling is designed to further appraise the Kirkham Abbey formation and test the deeper Cadeby formation at its optimum location, particularly given encouraging results retrieved from the West Newton A-1 and A-2.
Following successful results to date at West Newton, both Reabold Resources and Union Jack believe the site to be a large scale, conventional, onshore oil and gas asset.
Through its 59% interest in Rathlin Energy which holds a 66.67% interest in PEDL183, Reabold holds an effective interest in the licence of around 39%.
“We expect to see results that will prove up the substantial value inherent in an asset of this nature,” said Sachin Oza, Co-CEO of Reabold.
"Progress continues to be made in respect of the appraisal programme, particularly, the drilling of the West Newton B-1 well,” added Bramhill.
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