Reabold Resources (AIM:RBD ) and Union Jack Oil (AIM:UJO ) told investors that all key permits are now in place for testing at the West Newton site in PEDL 183, onshore UK.
Union Jack holds a 16.665% interest in the licence whilst Reabold holds around 39% via its 59% equity interest in Rathlin which is fully funded for activity across both A and B sites.
Both parties noted this morning that the site’s operator, Rathlin Energy, had received a positive decision document from the Environment Agency on Friday granting a variation to the permit.
Shares in Reabold Resources closed at 0.395p on Friday afternoon.
This variation will allow Rathlin to use mechanical methods for lifting wellbore fluids and for the utilisation of a smaller incineration unit during the testing of the associated WNA-2 well.
The group said early operations at the WNA-2 well had improved its understanding of the targeted Kirkham Abbey reservoir which identified a potential oil leg overlain by an associated gas cap within the reservoir interval.
It added that testing operations at West Newton will recommence once government guidance pertaining to COVID-19 permits.
“We are also seeing good progress with regards initial work at the West Newton B site and look forward to an active programme at both locations over the coming months,” said Stephen Williams, co-CEO of Reabold.
Shares in Union Jack Oil were trading 2.50% lower at 0.0975p on Monday morning.
Union Jack highlighted in March that it had more than US$6.2m of cash and has no debt, leaving it funded for all testing and drilling commitments in 2020.
The group added this morning that it was in “an excellent position” with both West Newton and its Wressle development project also expecting "first oil" in the first half of this year.
Meanwhile, Reabold noted it had in excess of £6m in cash to fund the 2020 work programme which includes the testing of West Newton A-2.
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