has announced the completion of its 37.1% investment in Rathlin Energy Ltd.
The deal was contingent on Rathlin settling a liability of of £33.8 million owed to Connaught Oil & Gas. Additionally, the deal hinged on the finalisation of a farm out, by Rathlin, of an onshore UK licence to Union Jack Oil and Humber Oil & Gas, with Rathlin retaining a 66.&% equity interest in the licence.
With these conditions now completed, the company will begin an appraisal well, planned for H1 2019, for the Licence PEDL 183 which contains the significant West Newton gas discovery.
The well has two test targets; the first is the Kirkham Abbey Formation gas discovery which has an approximately 72% chance of success and a net present value (NPV) of $247 million. The second target is the deeper Cadeby Formation reef flank oil prospect which has an estimated 24% success rate and an NPV of $850 million.
To further cement the dealings between Reabold and Rathlin, Stephen Williams, Co-CEO of Reabold, will be appointed to the board of Rathlin.
Reabold will also continue to hold an equity interest of more than 15% in Rathlin.
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Oil and gas investment company, Reabold Resources (RBD) shared with investors today that Rathlin Energy, operator of the PEDL 183 license onshore UK, has signed a rig contract for the drilling of the West Newton appraisal well. The well is expected to spud in April 2019.
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