Reabold has a 32.9% interest in Corallian Energy, which has a 49% interest in the high-impact Colter appraisal opportunity, offshore Dorset, United Kingdom.
Colter lies adjacent to the highly prolific Wytch Farm oil field, Europe’s largest onshore oil field which has, to date, produced more than 400 million barrels of oil.
A 1986 discovery well, drilled on Colter, recovered 41.9°API oil from a 10.5m oil column. Recently merged and reprocessed 3D seismic data has identified over 100m mapped vertical relief up-dip of the discovery well. Corallian estimates gross mean prospective resources of 23 million barrels of recoverable oil equivalent.
Reabold believes that the location and nature of the asset will result in highly attractive economics, with a low development cost, fast payback and a very low oil price breakeven.
In line with Reabold’s communicated strategy, Colter’s near-shore location ensures a highly cost-effective development plan with a net success case NPV of US$132 million, assuming a US$55/bbl oil price.
Payback is expected to be within 16 months following first oil with a highly robust economic breakeven of US$18/bbl.
The Colter appraisal well is intended to be drilled in Q1 2019.