REG - Reabold Resources - Approval for EA Permit at West Newton

Reabold ResourcesAnnouncement

27/09/2023 07:00

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RNS Number : 7282N  Reabold Resources PLC  27 September 2023

27 September 2023

 

Reabold Resources plc

 

("Reabold" or the "Company")

 

Approval for Environment Agency Permit at West Newton

 

Reabold Resources plc, the oil & gas investing company with a diversified
portfolio of exploration, appraisal and development projects, is pleased to
announce that the Environmental Agency ("EA") permit for the use of oil-based
drilling fluids at the West Newton B-2 well has been approved.

 

The EA has issued the variation of the permit for the West Newton B wellsite
which allows for the use of oil-based fluids within the Permian formations
during drilling and testing operations.

 

Plans for the proposed horizontal well from the West Newton B site are
underway and commencement of operations are targeted for H1 2024.

 

Well path selection and the engineered design have been completed, wellbore
casing purchased and the Operator, Rathlin Energy (UK) Limited, has approached
drilling rig and other key service contractors to determine their
availability.

 

As announced on 29 September 2022, the Competent Person's Report on West
Newton confirmed gross 2C unrisked technically recoverable resources of 197.6
bcf of sales gas, with an estimated 86% geological chance of success.

 

Reabold holds a ca. 56% economic interest in West Newton and PEDL183 via its
ca. 59% shareholding in Rathlin, which, in turn, has a 66.67% interest in
PEDL183. In addition, Reabold has a 16.665% direct licence interest in
PEDL183.

 

Reabold's balance sheet has sufficient funding for its direct share of the
planned drilling on the licence and the Company will also support Rathlin in
exploring funding options to enable the drilling of this well in H1 2024.
Reabold may be in a position to provide additional funding to Rathlin
following receipt of the second tranche payment from Shell relating to the
sale of the Victory asset.

 

Sachin Oza, Co-CEO of Reabold, commented:

 

"We are delighted to receive approval from the EA for the West Newton B site.
Our studies have clearly demonstrated that the use of oil-based drilling mud
will be a key factor in enhancing flow rates from wells in this field, and
therefore this is an important step for the drilling of the B-2 horizontal
well next year.

 

"West Newton is potentially one of the largest hydrocarbon fields discovered
onshore UK and we remain focused on developing and unlocking the significant
resource potential of this asset."

 

 

 

For further information, contact:

 

 Reabold Resources plc                                      c/o Camarco

 Sachin Oza                                                 +44 (0) 20 3757 4980

 Stephen Williams

 Strand Hanson Limited - Nominated & Financial Adviser      +44 (0) 20 7409 3494

 James Spinney

 James Dance

 Rob Patrick

 Stifel Nicolaus Europe Limited - Joint Broker              +44 (0) 20 7710 7600

 Callum Stewart

 Simon Mensley

 Ashton Clanfield

 finnCap Ltd - Joint Broker                                 +44 (0) 20 7220 0500

 Christopher Raggett

 Barney Hayward

 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. This strategy is illustrated by the recent sale of the undeveloped
Victory gas field to Shell, the proceeds of which are being returned to
shareholders and re-invested.

 

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