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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, and is located near to infrastructure and a gas hungry industrial base.
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.
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 a phased development programme for the licence. The North Sea Transition Authority has approved a revised work programme for PEDL 183 to:
- Re-enter and recomplete or sidetrack one of the currently suspended wells on or before 30 June 2026;
- Re-enter and recomplete or sidetrack one of the remaining suspended wells or drill and complete a new deviated or horizontal well on or before 30 June 2027; and
- Submit a field development plan on or before 30 June 2027.
Rathlin, as the operator, has applied to carry out a reservoir stimulation on the existing West Newton A-2 well. Reabold believes this to be a key step in fully de-risking the subsurface characteristics of the project at limited cost.
A feasibility study was conducted by independent energy consultants CNG Services Ltd and concluded that as a precursor to the intended West Newton full field development, an initial single well development and gas export plan could accelerate production and cash flow whilst requiring limited capital expenditure.
Although the early production demonstrates highly attractive standalone economics, it is envisaged that it will be a precursor to the full field conceptual development plan as previously disclosed. The pre-tax NPV(10) of the West Newton project was calculated to be US$179 million net to Reabold under the full field development plan.
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.
