REG - Reabold Resources - Update on Wick and Colter

Reabold ResourcesAnnouncement

13/11/2018 07:05

RNS Number : 1185H
Reabold Resources PLC
13 November 2018
 


13 November 2018
 
Reabold Resources Plc
"Reabold" or "the Company"
 
Update on Wick and Colter
 
Reabold is pleased to announce that Corallian Energy Limited ("Corallian"), in which the Company has a 32.9 per cent. interest, has received confirmation that the Offshore Petroleum Regulator for Environment and Decommissioning ("OPRED") has advised the Oil and Gas Authority of its in-principle agreement to the issue of the relevant consent for the drilling of the Wick and Colter wells.
There are several regulatory approvals and notifications still required before the consenting process is completed for the wells. When all the necessary approvals have been obtained, the wells will be drilled as a back-to-back programme using the ENSCO-72 Jack-Up rig and, subject to the approvals being in place, Corallian will commence the programme with the drilling of the Wick well during December 2018. Following completion of the Wick well, the rig will be mobilised from the Moray Firth to the English Channel to drill the Colter well.
The drilling campaign will be operated on behalf of Corallian by Fraser Well Management Limited. Orbis Energy Limited is acting as environmental consultant.
Wick, which will be the first target of the campaign, is an exploration prospect with estimated Mean Prospective Resources of 26 million barrels of oil equivalent*. Corallian holds a 40 per cent. interest in the project and will be paying 20 per cent. of the well costs, capped at a gross cost of £4.2 million, and thereafter its pro rata share of 40 per cent. of costs.
The drilling of the Colter appraisal well will directly follow completion of the Wick well. This well will be an appraisal of the 98/11-3 oil discovery, which contains an estimated Mean Prospective Resource of 23 million barrels of oil equivalent*. It is located in a structure adjacent to the highly significant Wytch Farm oil field.  Corallian has a 49 per cent. interest in the project and will be paying 40.33 per cent. of the well costs, capped at a gross cost of £8.0 million and thereafter its pro rata share of 49 per cent. of costs.
 
* Corallian management estimate
 
Stephen Williams, Co-CEO of Reabold, commented:
"We are very pleased to report this approval from OPRED, signalling impending activity at both Wick and Colter. Both prospects carry highly attractive economics with low development costs and fast payback in the event of success. Our investment in Corallian has given us significant exposure to both projects as well as additional opportunities within the Corallian asset base.
With Wick now planned in December 2018, and continued activity across the rest of our portfolio, Reabold shareholders can look forward to a very busy few months ahead as we seek to de-risk several high impact opportunities."
 
 
 
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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