Reabold Resources (RBD) and Union Jack Oil (UJO) announced today that drilling operations have begun at the West Newton A-2 appraisal well onshore UK.
The West Newton well, located in the PEDL183 licence, has a gross Best Estimate Contingent Resource of 189 billion cubic feet of gas equivalent in the Kirkham Abbey Shoal.
The licence, in which UJO has a 16.6% interest and Reabold 66.6%, is operated by Rathlin Energy (UK) Limited, of which Reabold has a 37% interest.
In addition, there is considerable upside potential, the companies argue, from the adjacent Cadeby Reef formation, an oil exploration target underlying the gas reservoir that has a gross Best Estimate Prospective Resource of 79.1 million barrels of oil equivalent.
Drilling operations will first drill into the Kirkham Abbey Formation gas discovery, before turning to the deeper Cadeby Formation oil exploration target.
The West Newton A-2 well is to be drilled to a total depth of approximately 2,000 metres below ground level. The drill is expected to take around 40 days.
The well is already fully funded and has been given a “combined geological and commercial Probability of Success” of over 60% and 26% over the Kirkham Abbey Shoal and Cadeby Reef formations respectively.
Stephen Williams, Co-CEO of Reabold, commented:
"The West Newton A-1 discovery suggests that we may have one of the largest onshore UK gas fields and we are delighted to have been able to fund the appraisal well that can potentially prove up its considerable value. If successful, West Newton's close proximity to abundant infrastructure and demand centres mean that it could be an important near-term addition to supplying UK energy demand."
Executive Chairman of Union Jack Oil, added, "We look forward to a safe and successful drilling campaign and to reporting preliminary results from the well to shareholders and the market when available."
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