West Newton – UK

Reabold has a 37.08% interest in Rathlin Energy (UK) Limited (“Rathlin”), a wholly-owned subsidiary of Calgary-based Connaught Oil & Gas Limited, who own a 66.67% equity interest in the significant onshore West Newton A-1 gas discovery, licence PEDL183.

Reabold is providing part of the funding for a Q1 2019 appraisal campaign on the 189 Bcfe Contingent Resource West Newton discovery which will have two objectives:
• To appraise the Kirkham Abbey Formation gas discovery which has an estimated 72% chance of success and an NPV of $247m*.
• To test a deeper Cadeby Formation reef flank oil prospect, considered by Rathlin to have an NPV of $850m and an estimated 24% chance of success*.

In line with Reabold’s investment strategy, West Newton, in a success case, offers a fast pathway to monetisation through its proximity to existing gas pipelines and infrastructure.

In 2017, Deloitte prepared a CPR incorporating both the data from the West Newton discovery well and subsequently acquired 3D seismic data over the field. The Deloitte CPR assigns Contingent Resource to the Kirkham Abbey gas formation and is the source of management volumetric assessments.

*Connaught Management estimate (Note: this estimate is based on the economic evaluations run by Deloitte for the CPR, updated by Connaught to reflect the most recent price forecasts provided by Deloitte).