REG - Reabold Resources - Farm-out of Curlew-A Appraisal Well

Reabold ResourcesAnnouncement

26/10/2018 07:05

RNS Number : 2937F
Reabold Resources PLC
26 October 2018
 


26 October 2018
 
Reabold Resources Plc
"Reabold" or "the Company"
 
Corallian - Farm-out of Curlew-A Appraisal Well
 
Reabold, the oil and gas investing company, is pleased to announce that Corallian Energy Limited ("Corallian"), in which Reabold has a 32.9% interest, has signed a farm-out agreement with Talon Petroleum (UK) Limited ("Talon"), a wholly-owned subsidiary of ASX-listed Talon Petroleum Limited, for a 10% interest in Licence P2396, which contains the Curlew-A discovery,  offshore UK, North Sea.
 
Pursuant to the terms of the farm-out, Talon will pay 15 per cent. of the drilling cost for an appraisal well at Curlew-A up to a cap of £12.0m and thereafter pro rata to its participating interest. The current estimated well cost, using a Jack-Up rig, is £9.7m.
 
The appraisal well is currently anticipated to be drilled by Corallian in H2 2019 to test the original 1977 Shell Curlew-A discovery, which encountered 10.5m of net oil sands in the Odin and Cromarty sandstones within a salt-cored anticline and recovered multiple, 36° API light oil samples. 
 
It is anticipated that the Curlew-A appraisal well will be drilled to a depth of approximately 2,700 metres sub-sea in a water depth of approximately 90 metres.
 
A Competent Person's Report on Curlew-A, completed by Software Information Solutions, Schlumberger Oilfield UK in October 2018 assigned the following gross volumes to the discovery:  
 



 


Unrisked Oil in Place


Unrisked Contingent Resource Volumes




 


Mmbo


Oil (mmbo)


Solution Gas (bscf)


Oil Equivalent (mmboe)




Low Estimate - 1C


56.5


15.5


23.9


19.5




Best Estimate - 2C


120.0


36.2


50.9


44.7




High Estimate - 3C


186.8


68.3


79.1


81.5



 
The intention for the appraisal well is to initially de-risk 44.7 mmboe of Unrisked 2C Contingent Resources before targeting a deeper secondary objective in the deeper Forties Sandstone. The Forties Sandstone was not previously encountered in the original discovery well but is expected to be developed in the southwestern flank of the structure where the appraisal well will be drilled.
 
Sachin Oza, Co-CEO commented:
"We are delighted that Corallian has participated in another high-value farm-out agreement. This demonstrates the strength of our strategy of investing at a company level as it gives Reabold exposure to a pipeline of new projects.
 
"Curlew-A is a perfect fit in our growing portfolio of low-risk, high-impact opportunities and we look forward to sharing operational progress from this appraisal program as it is achieved."
 
ENDS
For further information please contact:
 



Reabold Resources Plc
Sachin Oza / Stephen Williams


c/o Camarco
Tel. +44 (0)20 3757 4980




 
Strand Hanson Limited (Nominated and Financial Advisor)
Rory Murphy / James Spinney / James Dance


 
Tel. +44 (0)20 7409 3494




 
Camarco (PR)
James Crothers / Oliver Head / Billy Clegg


 
Tel. +44 (0)20 3757 4980




 
Whitman Howard Limited (Joint Broker)
Hugh Rich / Grant Barker


 
Tel. +44 (0)20 7659 1234




 
Turner Pope Investment (TPI) Ltd (Joint Broker)
Andy Thacker


 



 
 
 
Notes to Editors
Reabold Resources is an investing company investing in the exploration and production ("E&P") sector. The Company's investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world. 
 
As an investor in upstream oil & gas projects, Reabold aims to create value from each project by investing in undervalued, low-risk, near-term upstream oil & gas projects and by identifying a clear exit plan prior to investment.
 
Reabold's long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.
 
Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company's strategy, demonstrated by existing investments in the UK, Romania and the United States.
 




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