TIDMRBD
RNS Number : 2394X
Reabold Resources PLC
18 December 2019
Market Abuse Regulation (MAR) Disclosure
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
18 December 2019
Reabold Resources Plc
("Reabold" or the "Company")
West Newton Project Update
Reabold, the AIM investing company which focuses on investments
in pre-cash flow upstream oil and gas projects, is pleased to
announce an update in respect of the Extended Well Test ("EWT") on
the West Newton A-2 appraisal well, of the West Newton area
contained within onshore UK licence PEDL183.
Reabold has an approximate 39 per cent. indirect interest in the
West Newton licence via its 59 per cent. equity interest Rathlin
Energy (UK) Limited ("Rathlin"). Rathlin holds a 66.67 per cent.
direct interest in licence and is the operator.
Highlights
-- EWT operations, suspended in August 2019 in order to review
and revise the well test design, to be recommenced following
receipt of required regulatory approvals
-- Following the EWT, the well will be monitored for inflow, shut in and suspended
-- Estimated cost of work is well within original well test budget
-- Planning permissions in place for two additional wells, to
test Kirkham Abbey formation and Cadeby formation respectively
EWT operations on the Kirkham Abbey formation at the West Newton
A-2 well were temporarily suspended in August 2019, as
modifications to handle to the newly recognized liquid content of
the originally approved gas testing programme were limited by
equipment availability at the time. Gas flow to surface was
achieved and flared during operations, but reservoir fluids were
not recovered.
Following the discovery of a reservoir containing a 45 metre
liquid hydrocarbon column underlying a 20 metre gas column, the EWT
was suspended in order to review and revise the well test design to
seek to deliver and validate this identification of liquid
hydrocarbons. The oil zone was not fully evaluated during the
initial phase of testing.
Pumping, surface separation, fluid storage tanks and other
testing equipment has been sourced to undertake this work.
Regulatory approvals to re-commence the EWT are currently being
sought. Once these approvals have been received, the equipment will
be mobilised to site at the earliest opportunity and the EWT will
re-commence.
The programme will include pulling the existing completion
assembly from the well, running a new tubing and pumping bottom
hole assembly and the installation of a pumping wellhead. These
operations will be followed by the running in of the pump and well
rods and the installation of a surface pumping unit. The well will
then be pumped to recover load fluid, directing all recovery
through the test unit and incinerator. The well will be monitored
for inflow and, following the EWT, will be shut in and
suspended.
The estimated cost of this additional work is well within the
original well test budget.
Furthermore, statutory planning permissions are in place to
drill two additional wells, West Newton B-1 and B-2, the locations
of which are considered to be optimal to test the Kirkham Abbey
formation and test the potential of the prognosed Cadeby formation,
a further, highly important and potentially high value target.
Rathlin is fully funded for the 2020 work programme.
Stephen Williams, Co-CEO of Reabold, commented:
"Reabold is delighted with the progress that continues at the
West Newton A-2 well to further our understanding of the discovery
and welcomes the near-term resumption of the well test.
Reabold's recently increased interest in Rathlin provides us
further exposure to what continues to develop into a very exciting,
large-scale asset. Once the test is complete, we look forward to
drilling the additional two wells to test the Kirkham Abbey
formation and the potential of the Cadeby formation, which is
considered a highly important and valued target."
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
Rory Murphy
James Dance +44 (0)20 7409 3494
Stifel Nicolaus Europe Limited - Joint Broker
Callum Stewart
Nicholas Rhodes
Ashton Clanfield +44 (0) 20 7710 7600
Whitman Howard Limited - Joint Broker
Nick Lovering
Grant Barker +44 (0) 20 7659 1234
Turner Pope Investments (TPI) Ltd - Joint
Broker
Andy Thacker
Zoe Alexander +44 (0) 20 3657 0050
Camarco
James Crothers
Ollie Head
Billy Clegg +44 (0) 20 3757 4980
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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END
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