REG - Reabold Resources - Competent Person's Report on UK Licence P2478
16/02/2023 07:00
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RNS Number : 0761Q Reabold Resources PLC 16 February 2023
16 February 2023
Reabold Resources Plc
("Reabold" or the "Company")
Competent Person's Report on UK Licence P2478 ("Dunrobin")
Reabold Resources plc, the oil & gas investing company with a diversified
portfolio of exploration, appraisal and development projects, is pleased to
announce that a copy of a Competent Person's Report ("CPR") prepared by RPS
Group ("RPS") on UKCS Licence P2478 on behalf of the Joint Venture partnership
with Baron Oil plc and Upland Resources (UK Onshore) Limited (each with a 32%
working interest) (the "JV"), in which Reabold is the Licence Administrator
with a 36% working interest, can be viewed on its website at the following
link: www.reabold.com/investor-relations/reports-and-presentations/
(http://www.reabold.com/investor-relations/reports-and-presentations/)
The CPR has been prepared in accordance with the June 2018 Petroleum Resources
Management System ("SPE PRMS") as the standard for reporting. The key points
from the CPR and a summary of the gross and net technically recoverable
prospective resources are set out below.
Key Points
· 201 mmboe(1) aggregate gross unrisked(2) Pmean Prospective Resources
on licence P2478
· The Dunrobin West prospect ("Dunrobin West"), agreed by the JV to be
the proposed location of the first exploration well on the licence, would
target 119 mmboe aggregate gross unrisked Pmean Prospective Resources(3)
· 34% Chance of Geologic Discovery (P(g) ) on Dunrobin West Jurassic
primary target
· Secondary Triassic target at Dunrobin West, which along with the
Jurassic can be tested by a single vertical borehole, included in formal
resource assessment for the first time with a P(g) of 12%
· Dunrobin West dry hole drilling costs to a total depth of 800 metres
estimated by the JV to be £8.6 million gross
· The Company believes that Dunrobin West is geologically analogous to the
Beatrice field, which produced 164 mmboe
· Success at Dunrobin West would significantly de-risk Dunrobin Central
& East and Golspie analogous prospects
· Reabold's acquisition of, inter alia, licence P2478 from Corallian
Energy Limited as announced on 4 May 2022, for £250,000, has provided the
Company with additional net unrisked Pmean Prospective Resources from P2478 of
72 mmboe
__________________________
1 The CPR reports oil and gas Prospective Resources. The oil equivalent value
of the gas resources has been estimated by the Company using a factor of
5.8bcf per mmboe.
2 The unrisked aggregation was performed by the Company and assumes that all
prospects at all levels are successful.
3 The unrisked aggregation of Dunrobin West was performed by the Company. The
volumes were presented for each reservoir in the CPR and, at the Company
request, were not aggregated probabilistically.
Stephen Williams, Co-CEO of Reabold, commented:
"We are pleased that the CPR has confirmed the western part of the Dunrobin
complex provides us with an exciting drillable prospect where a relatively
low-cost exploration well can target more than 100 mmbbl of gross Pmean
Prospective Resources with low geological risk.
We believe that the results from this CPR for P2478 alone strongly supports
our decision to acquire, inter alia, licence P2478 from Corallian Energy for
£250,000. Reabold has retained four other licences from that acquisition that
we continue to progress technically and commercially.
The publication of this CPR adds further validity to the technical work
carried out by Reabold and supports the ongoing farmout campaign being
formally run by us for the Reabold North Sea portfolio, which has already
attracted industry interest."
Prospective Resources
The table below summarises RPS's independent assessment of the Prospective
Resources, from which are derived the net technically recoverable Prospective
Resources attributable to Reabold's 36% working interest, wholly within the
P2478 licence areas as derived from the CPR which has an effective date of 30
September 2022.
Prospective Resources Gross Attributable to Licence Net Attributable to Reabold Risk Factor
Low Estimate Best Estimate High Estimate Mean Estimate Low Estimate Best Estimate High Estimate Mean Estimate
(1U) (2U) (3U) (1U) (2U) (3U)
Technically recoverable resources - Oil (mmbbl)
Dunrobin West Jurassic 7 42 168 71 2 15 60 25 34%
Dunrobin West Triassic 7 34 98 45 2 12 35 16 12%
Dunrobin C&E Jurassic 1 8 67 22 0.4 3 24 8 31%
Dunrobin C&E Triassic 1 9 56 22 0.4 3 20 8 14%
Golspie Jurassic 4 12 27 14 1 4 10 5 27%
Golspie Triassic 7 20 43 23 3 7 15 8 12%
Total Oil (mmbbl) 197 70
Technically recoverable resources - Associated & Non-associated Gas (bcf)
Dunrobin West Jurassic 2 7 22 10 0.9 3 8 4 34%
Dunrobin West Triassic 1 4 11 5 0.3 1 4 2 12%
Dunrobin C&E Jurassic 0.1 1 7 2 0.04 0.3 3 1 31%
Dunrobin C&E Triassic 0.1 1 6 2 0.04 0.4 2 1 14%
Golspie Jurassic 0.4 1 3 2 0.1 0.5 1.1 0.6 27%
Golspie Triassic 0.8 2 5 3 0.3 0.8 1.7 1.0 12%
Total Gas (bcf) 24 9.6
Oil equivalent (mmboe)
Dunrobin West Jurassic 7 43 172 73 3 16 62 26 34%
Dunrobin West Triassic 7 35 100 46 3 12 36 17 12%
Dunrobin C&E Jurassic 1 8 68 22 0.4 3 25 8 31%
Dunrobin C&E Triassic 1 9 57 22 0.4 3 21 8 14%
Golspie Jurassic 4 12 28 14 1 4 10 5 27%
Golspie Triassic 7 20 44 24 3 7 16 8 12%
Total Oil equivalent (mmboe) 201 72
Notes:
· Pmean totals are by arithmetic summation (in-house).
· "Gross Attributable" are 100% of the resources attributable to
the licence whilst "Net Attributable" are those attributable to Reabold's
effective interest in the licence (36%) before economic limit test.
· Prospective oil equivalent resource calculations have been
performed in-house using a factor of 5.8bcf per mmboe
· Includes a mix of associated gas and non-associated gas from
Dunrobin West Gas Cap, all others are associated gas only.
An in-house analysis of a floating production storage and offloading (FPSO)
development based on the Pmean 71 million barrels of technically recoverable
oil in the Jurassic at Dunrobin West indicates an unrisked gross net present
value of £691 million (£249 million net to Reabold), using a 2023 oil price
of $70 per barrel, first oil production in mid-2028, a discount rate of 10%,
standard UK fiscal terms, 3% inflation and an exchange rate of US$1.25 to £1.
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
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
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.
Qualified Person's Statement
Pursuant to the requirements of the AIM Rules - Note for Mining and Oil and
Gas Companies, the technical information contained in this announcement has
been reviewed by Dr Jeremy Jarvis as a Qualified Person. Jeremy has more than
35 years' experience as a petroleum geologist, holds a BSc in Geology from the
University of Dundee and a Ph.D. from Imperial College, University of London.
He is a member of the American Association of Petroleum Geologists and the
Petroleum Exploration Society of Great Britain.
Glossary of Technical Terms
bcf Billion standard cubic feet of gas.
Best Estimate or 2U Denotes the mid estimate qualifying as Prospective Resources. Reflects a
volume estimate that there is a 50% probability that the quantities actually
recovered will equal or exceed the estimate.
Risk factor or P(g) The estimated probability that exploration activities will confirm the
existence of a significant accumulation of potentially recoverable petroleum
High Estimate or 3U Denotes the high estimate qualifying as Prospective Resources. Reflects a
volume estimate that there is a 10% probability that the quantities actually
recovered will equal or exceed the estimate.
Low Estimate or 1U Denotes the low estimate qualifying as Prospective Resources. Reflects a
volume estimate that there is a 90% probability that the quantities actually
recovered will equal or exceed the estimate.
Mean or Pmean Reflects a mid-case volume estimate of resource derived using probabilistic
methodology. This is the mean of the probability distribution for the resource
estimates and may be skewed by resource numbers with relatively low
probabilities.
mmbbl Million barrels of oil.
mmboe Million barrels of oil equivalent. Volume derived by dividing the estimate
of the volume of natural gas in billion cubic feet by 5.8 in order to convert
it to an equivalent in million barrels of oil and, where relevant, adding this
to an estimate of the volume of oil in millions of barrels.
Prospective Resources Quantities of petroleum that are estimated to exist originally in naturally
occurring reservoirs, as of a given date. Crude oil in-place, natural gas
in-place, and natural bitumen in-place are defined in the same manner.
SPE PRMS The Society of Petroleum Engineers' ("SPE") Petroleum Resources Management
System ("PRMS"): a system developed for consistent and reliable definition,
classification, and estimation of hydrocarbon resources prepared by the Oil
and Gas Reserves Committee of SPE and approved by the SPE Board in June 2018
following input from six sponsoring societies: the World Petroleum Council,
the American Association of Petroleum Geologists, the Society of Petroleum
Evaluation Engineers, the Society of Exploration Geophysicists, the European
Association of Geoscientists and Engineers, and the Society of Petrophysicists
and Well Log Analysts. Quantities of petroleum estimated, as of a given date,
to be potentially recoverable from undiscovered accumulations by application
of future development projects. The total quantity of petroleum that is
estimated to exist originally in naturally occurring reservoirs, as of a given
date. Crude oil in-place, natural gas in-place, and natural bitumen in-place
are defined in the same manner.
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