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Reabold owns a 56% economic interest in licence PEDL 183 which contains the West Newton Project and the wider West Newton project area.
West Newton
West Newton is potentially one of the largest hydrocarbon fields discovered onshore UK.
Held through a direct 16.665% licence interest and a 59% shareholding in Rathlin, the operator of the Joint Venture for PEDL 183, Reabold has a 56% economic interest in the development opportunity that is the West Newton Field, East Yorkshire.
Following the completion of the sale of Corallian to Shell for £32 million gross, Reabold intends to use the net proceeds to advance development of its existing assets, including the drilling of the first development well at West Newton in 2024.
A Competent Person’s Report (CPR) was completed by RPS Energy Canada Ltd on the PEDL 183 licence area. The CPR reports gross 2C unrisked technically recoverable resource of 197.6 bcf of sales gas and attributes 86% geological chance of success to West Newton.
The CPR indicates First Gas from West Newton no later than 2026, and based on an initial five well development drilling campaign. However, Reabold and its JV partners have subsequently developed an early production plan based on production from the first development well, to be drilled in 2024.
A feasibility study is being undertaken by independent energy consultants CNG Services Limited for the single well gas development and gas export plan associated with the WN-A3 well.
The Company expects that gas production could be brought to market within months of drilling and testing with a materially reduced capital investment, providing significant early cash flow whilst additional activity is carried out on the further development of the West Newton project.
This early production plan is envisaged as a precursor to the conceptual development plan pursuant to the Company’s announcement of 21 June 2022, and which had an associated pre-tax NPV(10) of US$222m, net to Reabold’s interest.
The Company estimates that West Newton has the potential to meet gas demand for c.380,000 UK homes for many years. This will alleviate domestic gas shortfall and reduce the UK’s reliance on imported gas.
A Carbon Intensity Study completed by GaffneyCline on the West Newton field concluded that the project has an AA rating for Carbon Intensity for its potential upstream gas and condensate production, the lowest possible carbon intensity rating category on GaffneyCline’s scale.
The Carbon Intensity Study found that the West Newton field has a Carbon Intensity significantly lower than the UK average and onshore and offshore analogues. It is also significantly lower than the average imported liquified natural gas (LNG), based on the NSTA Natural Carbon Footprint Analysis published in July 2023.
West Newton Field Carbon Intensity versus All UK Fields & UK Gas and Condensate Fields (where the Base Case represents West Newton)
Greater West Newton Area
In addition to the West Newton discovery, the PEDL183 joint venture has recognised multiple look-alike opportunities across the licence, providing significant follow-on potential for a development at West Newton.
These anomalies are:
- Ellerby
- Spring Hill
- Withernsea
It is estimated these prospects contain a further c.360Bcf of resources and each have a 43% geological chance of success.
The Company anticipates that the significant learnings from the West Newton exploration program around drilling and completion techniques can be further leveraged at these targets which, if successfully tested, could be tied into West Newton infrastructure.
