Oil and gas investment company, Reabold Resources (RBD) shared with investors today that Rathlin Energy, operator of the PEDL 183 license onshore UK, has signed a rig contract for the drilling of the West Newton appraisal well. The well is expected to spud in April 2019.
Reabold has 37% equity interest in Rathlin which, in turn, has a 67% interest in PEDL 38 and the West Newton project.
The company has stated that the West Newton well will have two central objectives. First, the appraisal of the Kirkham Abbey Formation gas discovery which has a 72, and a net present value (NPV) of $185m.
Secondly, the well will test the deeper Cadeby Formation reef flank oil prospect, which Rathlin considers to have an NPV of $850m and a 24% success rate.
Keeping in line with Reabold’s larger investment strategy, West Newton, should it be successful, offers a quick pathway to monetisation thanks to its proximity to existing gas pipelines and infrastructure.
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."
Watch here as Sachin Oza and Stephen WIlliam, Co-CEOs of Reabold Resources, discuss the news coming out from its Monroe Swell project and answer questions from investors on Twitter.
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