REG - Reabold Resources - Operations Update on West Newton

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07/08/2025 07:00

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RNS Number : 3076U  Reabold Resources PLC  07 August 2025

 

07 August 2025

Reabold Resources plc

("Reabold" or the "Company")

Operations Update on West Newton

Potential of early monetisation through Crypto Mining

 

Reabold Resources plc, the investing company focussed on developing strategic
gas projects for European energy security, is pleased to provide the following
update on Rathlin Energy (UK) Ltd ("Rathlin").

Rathlin is operator of the PEDL 183 Licence which includes the West Newton gas
development, located onshore UK in East Yorkshire. Reabold holds a c.69.9%
economic interest in West Newton and PEDL 183 via its c.79.8% shareholding in
Rathlin, which, in turn, has a 66.67% interest in PEDL 183. In addition,
Reabold has a 16.665% direct licence interest in PEDL 183.

Highlights:

·      Feasibility study and evaluation of the potential for an early
development and monetisation strategy at West Newton

·     The potential use of gas produced from the existing wells to
generate on-site electricity and power crypto mining activities

·     Entered a non-binding LOI with 360 Energy to scope and design a
potential bitcoin mining solution at West Newton, subject to regulatory and
third-party approvals

·   Provides early production and cash flow in advance of planned full
field gas development, offering a significant near-term value generating
opportunity

 

Bitcoin Mining Evaluation

Rathlin has been evaluating ways of generating additional value through early
production schemes ahead of the planned longer term full field development at
West Newton. In particular, Rathlin has been looking at development concepts
that would co-locate gas-powered generators and crypto mining equipment at the
West Newton A and West Newton B sites, which would be fuelled by the natural
gas produced from the existing wells at those sites, namely; West Newton A-2
(WNA-2), West Newton A-1 (WNA-1) and West Newton B-1z (WNB-1z).

Reabold is pleased to announce that Rathlin has entered a non-binding Letter
of Intent ("LOI") with 360 Energy, Inc. ("360 Energy"), a natural gas offtake
and monetisation solutions provider, headquartered in Austin, TX. Under the
terms of the LOI, Rathlin will work with 360 Energy to scope, design, and
subject to regulatory and third party approvals, deploy 360 Energy's proven
In-Field Computing ("IFC") technology, which is a natural gas offtake
solution, designed to convert produced natural gas directly into electricity
to power 360 Energy's on-site data centres, generating revenues from bitcoin
production. While this engagement is at an early stage, this relationship has
the potential to enable Rathlin to realise significant returns from natural
gas volumes from wells that would not otherwise contribute to either the early
production scheme or the full field development, and Rathlin's preliminary
economic estimates indicate that cryptocurrency mining could deliver very
attractive returns.

The LOI envisages the IFC initially being deployed at the West Newton A site,
converting produced natural gas from the WNA-2 well into bitcoin, and
subsequently being rolled out for the WNA-1 and WNB-1z wells.

As such, bitcoin mining development plans will compliment both the early
production scheme and the full field development. As announced on 13 June
2024, the pre-tax NPV(10) of the West Newton project was calculated to
be US$179 million net to Reabold under the full field development plan.

Rathlin intends to incorporate IFC technology into its existing operations, as
well as in its asset evaluation processes and capital allocation strategy
moving forward. The parties are working towards entering a binding, definitive
agreement that is expected to be based on the terms outlined in the LOI.

 

Sachin Oza, Co-CEO of Reabold Resources commented:

"We are delighted to announce this initial step as an additional element of
value creation from the West Newton field. Generating early revenue from the
existing well stock also moves the West Newton project further forward in
unlocking the full value of this significant natural gas resource.

We believe that the creation and accumulation of new Bitcoin through mining
operations offers a significantly enhanced, sustainable return, and one which
is superior to simple cash purchases and accumulation of Bitcoin on the
balance sheet, popularly referred to as a Bitcoin treasury strategy.

The accumulation of mined Bitcoin, taking advantage of Rathlin's access to
extremely low cost energy, is both a precursor and supplement to the unlocking
of the substantial low-cost natural gas at West Newton, which we believe will
play an invaluable role in UK energy security in the years ahead.

In addition, the UK government's AI Opportunities Action Plan, announced in
January this year, set out new measures that will create dedicated AI Growth
Zones. We believe that AI/data centres will be a key growth area of the UK
economy in the coming years, and that West Newton's onshore setting and low
operating costs also render it ideal for powering co-located data centres at
the existing well sites from domestically produced gas."

 

About 360 Energy

360 Energy, Inc. provides next-generation solutions for natural gas offtake
and monetization in the oil and gas industry. Its proprietary In-Field
Computing (IFC) platform captures stranded, flared or uneconomic gas and
converts it into electricity for powering modular data centers on-site. 360
Energy is at the forefront of integrating advanced computing with traditional
energy production to help operators earn more and flare less.
https://www.360energyco.com/ (https://www.360energyco.com/)

 

This announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018, as amended.

 

For further information, contact:

 

 Reabold Resources plc                     c/o Camarco

 Sachin Oza                                +44 (0) 20 3757 4980

 Stephen Williams

 Cavendish - Broker and Nominated Adviser   +44 (0) 20 7220 0500

 Neil McDonald

 Pearl Kellie

 Camarco                                   +44 (0) 20 3757 4980

 Billy Clegg

 Rebecca Waterworth

 Sam Morris

 

Notes to Editors

 

Reabold Resources plc has a diversified portfolio of exploration, appraisal
and development oil & gas projects. Reabold's strategy is to invest in
low-risk, near-term projects which it considers to have significant valuation
uplift potential, with a clear monetisation plan, where receipt of such
proceeds will be returned to shareholders and re-invested into further growth
projects.

 

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