Reabold Resources PLC Rig Contract Signed for West Newton Well (8071T)
March 25 2019 - 2:01AM
UK Regulatory
TIDMRBD
RNS Number : 8071T
Reabold Resources PLC
25 March 2019
25 March 2019
Reabold Resources Plc
("Reabold" or "the Company")
Rig Contract Signed for West Newton Well
Reabold is pleased to announce that Rathlin Energy (UK) Limited
("Rathlin"), operator of the PEDL 183 license onshore UK, has
signed a rig contract for the drilling of the West Newton appraisal
well, expected to spud in April 2019. Reabold has a 37 per cent.
equity interest in Rathlin, which has a 67 per cent. interest in
PEDL 183 and the West Newton project.
Project Highlights:
-- Well spud expected in April 2019, designed to test two high-impact targets
-- Gross Contingent Resource of 189Bcf (31.5Mboe) assigned to the West Newton A-1 gas discovery
-- Gas appraisal target with a 72% chance of success and gross NPV (10) of $247M*
-- Additional upside from the testing of the reef flank Cadeby
formation oil prospect, with gross Prospective Resource of
79.1Mboe
-- Cadeby oil exploration target which has a 24% chance of success and gross NPV (10) of $850m*
-- Planning permission for the appraisal well is in place and the target is drill ready
-- Management estimates supported by a 2017 CPR
The appraisal well at West Newton will have two objectives. The
first objective is to appraise the Kirkham Abbey Formation gas
discovery which has a 72 per cent. chance of success and an NPV of
$185m*. The second objective of the well is to test a deeper Cadeby
Formation reef flank oil prospect, considered by Rathlin to have an
NPV of $850m and a 24 per cent. chance of success*.
In line with Reabold's investment strategy, West Newton, in a
success case, offers a fast pathway to monetisation through its
proximity to existing gas pipelines and infrastructure.
*Connaught Oil & Gas Limited management estimate. Connaught
has a 35 per cent. interest in Rathlin and is operator.
In 2017, Deloitte LLP prepared a CPR for Connaught Oil & Gas
Limited incorporating both the data from the West Newton discovery
well and subsequently acquired 3D seismic data over the field. The
Deloitte CPR assigns Contingent Resource to the Kirkham Abbey gas
formation and is the source of management volumetric
assessments.
Sachin Oza, Co-CEO of Reabold, commented:
"Reabold is delighted that the appraisal drilling of West Newton
has progressed so quickly since we made our investment to fund the
well. Both the scale and location of the resource in East Yorkshire
make it a highly strategic asset. We look forward to the drilling
and testing of this well in the coming weeks."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
ENDS
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
Advisor)
Rory Murphy
James Spinney
James Dance +44 (0)20 7409 3494
Camarco
James Crothers
Ollie Head
Billy Clegg +44 (0) 20 3757 4980
Whitman Howard Limited - Joint Broker
Nick Lovering
Grant Barker +44 (0) 20 7659 1234
Turner Pope Investments (TPI) Ltd - Joint
Broker
Andy Thacker +44 (0) 20 3621 4120
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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