REG - Reabold Resources - Publication of PEDL183 CPR by RPS Energy

Reabold ResourcesAnnouncement

29/09/2022 07:16

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RNS Number : 0821B  Reabold Resources PLC  29 September 2022

29 September 2022

 

Reabold Resources plc

 

("Reabold" or the "Company")

 

 

Publication of PEDL183 CPR by RPS Energy

 

Reabold, the AIM quoted investing company with a portfolio of upstream oil and
gas projects, is pleased to provide the following update on the competent
person's report ("CPR") that has been completed by RPS Energy Canada Ltd
("RPS") on the UK onshore licence, PEDL 183, which contains the West Newton
discovery, in which Reabold holds a c.56% economic interest.

 

Key highlights:

 

Resource Potential

·      CPR confirms that West Newton is potentially one of the largest
hydrocarbon fields discovered onshore UK

o  Gross 2C unrisked technically recoverable resource of 197.6 bcf of sales
gas

o  CPR attributes 86% geological chance of success to West Newton

·      CPR estimates a prospective resource potential from Spring Hill,
Withernsea and Ellerby

o  Combined gross 2U unrisked recoverable resource of 363.7 bcf of sales gas

o  CPR attributes 43% geological chance of success to each of Spring Hill,
Withernsea and Ellerby

o  A successful well result on the first prospect, would likely increase the
chance of success for the remaining two prospects

Economics

·      Based on RPS's risked forecasts, the economic modelling
calculates an NPV10 of US$396 million on a 100% basis for West Newton.

o  Implies NPV10 of US$222 million for Reabold's c.56% economic interest

·      Supports the results of the joint venture partners' conceptual
development plan

·      The full CPR is available on our website and can be viewed at:
https://reabold.com/investor-relations/reports-and-presentations/
(https://reabold.com/investor-relations/reports-and-presentations/)

 

Social

·      West Newton has the potential meet gas demand for c.380,000 UK
homes for many years

·      West Newton could be on stream in 2026 alleviating domestic gas
shortfall, reducing the UK's reliance on imported gas

 

Summary of Key Data from CPR

WEST NEWTON GROSS ECONOMICALLY RECOVERABLE RESOURCES

 Category  Gross Economically Recoverable
           Gas               Liquids

(bcf)
(mbbl)
 1C        100               299
 2C        198               593
 3C        393               1,179

 

 

PROSPECTIVE RESOURCES GROSS

 Recoverable Sales Gas (bcf)                  Low    Best   High
 Ellerby                                      56.4   132.2  310.0
 Spring Hill                                  58.2   122.6  257.7
 Withernsea                                   27.6   68.7   167.2
 Aggregate Prospective Sales Gas Resource(1)  220.2  363.7  611.7

 1  (#_edn1) Probabilistic outcomes do not sum arithmetically

 

ECONOMIC SUMMARY

 Resource   Net Present Value (US$M)(2)

Category
            0%       5%       10%     15%     20%
 1C         729.9    371.8    220.5   141.0   93.3
 2C         1,593.1  702.1    396.1   250.2   166.6
 3C         3,387.7  1,329.5  711.7   436.5   286.2

 2  (#_edn2) Calculations inferred from CPR and based on 100% of West Newton

 

Definitions:

 

1C - The low estimate of Contingent Resources. There is estimated to be a 90%
probability that the quantities actually recovered could equal or exceed this
estimate

 

2C - The best estimate of Contingent Resources. There is estimated to be a 50%
probability that the quantities actually recovered could equal or exceed this
estimate

 

3C - The high estimate of Contingent Resources. There is estimated to be a 10%
probability that the quantities actually recovered could equal or exceed this
estimate

 

2U - The unrisked best estimate of Prospective Resources

 

 

Stephen Williams, Co-CEO of Reabold, commented:

 

"We are very pleased with the results of the CPR, which provides external
validation of our view that West Newton is a strategic asset that can play an
important role in improving the UK's security of supply requirements for
natural gas.  West Newton's gas could supply 380,000 UK homes for many years,
alleviating our reliance on imported gas. Furthermore, we are very excited by
the prospective resource potential from Ellerby, Spring Hill and Withernsea,
which combined are potentially larger than West Newton, and we would note that
there remains considerable further running room on the licence beyond that
covered by the CPR. We look forward to the drilling of the West Newton B-2
horizontal well that will be a key step in developing and exploiting the
substantial resource potential in PEDL 183."

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.

 

Regulatory Information

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

 Stephen Williams                                           +44 (0) 20 3757 4980

 Sachin Oza

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

 James Spinney

 Rory Murphy

 James Dance

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

 Callum Stewart

 Simon Mensley

 Ashton Clanfield

 Panmure Gordon - Joint Broker                              +44 (0) 207 886 2733

 Hugh Rich

 Camarco                                                    +44 (0) 20 3757 4980

 James Crothers

 Billy Clegg

 Rebecca Waterworth

 

 

 

Notes to Editors

 

Reabold Resources plc is an investing company investing in the exploration and
production ("E&P") sector and has a diversified portfolio of assets in
upstream oil & gas projects. Reabold aims to create value from each
project by investing in undervalued, low-risk, near-term projects and by
identifying a clear exit plan prior to investment. 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.

 

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.

 

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