REG - Reabold Resources - Update on West Newton Activity Programme

Reabold ResourcesAnnouncement

20/02/2020 07:00

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RNS Number : 5358D  Reabold Resources PLC  20 February 2020

 

20 February 2020

 

Reabold Resources Plc

("Reabold" or the "Company")

Update on West Newton Activity Programme

 

Reabold, the AIM investing company which focuses on investments in pre-cash
flow upstream oil and gas projects, is pleased to announce an update regarding
the anticipated work programme at West Newton within the PEDL183 licence area,
onshore UK.

 

PEDL183 covers an area of 176,000 acres and is situated in East Yorkshire
within the onshore UK part of the Southern Permian Basin. Rathlin Energy (UK)
Limited ("Rathlin" or the "Operator"), in which Reabold has a 59 per cent.
equity interest, holds a 66.67 per cent. interest in PEDL183. Reabold,
therefore, holds an approximate 39 per cent. effective interest in the
licence.

 

PEDL183 contains the West Newton A-1 discovery well and the West Newton A-2
appraisal well, with reservoirs within the Permian Zechstein geological group,
in particular in the Kirkham Abbey geological formation.

 

West Newton A-2 Test

 

Following the successful drilling of the A-2 well as announced by the Company
on 17 June 2019, the Extended Well Test ("EWT") operations were paused in late
August 2019, in order to design a test that was better suited to evaluate the
significant oil column encountered in the A-2 well, as opposed to the original
intention, which was to test what was expected to be predominantly gas. This
alternative test has been designed by the Operator and all necessary equipment
has been identified to recommence the EWT.

 

The re-designed test requires that the Operator obtains regulatory approvals
prior to the recommencement of the re-calibrated EWT. Rathlin is actively
engaged with the relevant regulatory bodies in respect of this process.

 

The Health and Safety Executive's ("HSE") 21-day Borehole Sites and Operations
Regulations notification period has been satisfied with no objections raised
by the HSE. Subsequently, Rathlin has now filed a revised operating plan to
the Environment Agency ("EA"). A further announcement regarding the EA's
determination will be made in due course, as and when appropriate.

 

Following EA approval, the Operator will notify the Oil and Gas Authority in
respect of the recommencement of the EWT.

 

West Newton B Drilling

 

The process for the commencement of drilling operations at the West Newton B
site is independent of the EWT at West Newton A-2.

 

The bottom hole drilling location for the West Newton B-1 well has been
finalised and preparations are currently underway for the works required prior
to the commencement of operations at the B site, which is expected to begin
during Q2 2020. Rathlin is fully funded for these operations.

 

Rathlin currently has permission to drill two wells at the West Newton B site.
The first planned well to be drilled, West Newton B-1, is designed to both
further appraise the Kirkham Abbey formation and test the deeper Cadeby
formation at its optimum location, particularly given the encouraging results
retrieved from the West Newton A-1 and A-2 wells.

 

 

Sachin Oza, Co-CEO of Reabold, commented:

"We remain extremely excited by the potential of West Newton, which we believe
to be a large scale, conventional, onshore oil and gas asset.  As we approach
the commencement of the test programme at A-2, and more particularly the
additional drilling at West Newton B, we expect to see results that will prove
up the substantial value inherent in an asset of this nature. Rathlin is fully
funded for a substantial work programme through 2020, and we look forward to
updating investors with results as they become available."

 

 

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.

 

For further information please contact:

 Reabold Resources plc                                    c/o Camarco

 Stephen Williams                                         +44 (0) 20 3757 4980

 Sachin Oza
 Strand Hanson Limited (Nominated and Financial Adviser)

 James Spinney                                            +44 (0)20 7409 3494

 Rory Murphy

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

 Callum Stewart

 Nicholas Rhodes

 Ashton Clanfield

 Whitman Howard Limited - Joint Broker                    +44 (0) 20 7659 1234

 Nick Lovering

 Grant Barker
 Camarco                                                  +44 (0) 20 3757 4980

 James Crothers

 Ollie Head

 Billy Clegg

 

Notes to Editors

Reabold Resources plc 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.

 

 

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