West Newton – UK

Reabold holds a ca. 56 per cent. economic interest in West Newton via its ca. 59 per cent. shareholding in Rathlin, which, in turn, has a 66.67 per cent. interest in PEDL183. In addition, Reabold has a 16.665 per cent. direct licence interest in PEDL 183.

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

On 17 June 2019, Reabold announced a discovery at West Newton, with both gas and liquid hydrocarbon volumes encountered. Subsequent analysis and initial testing at the West Newton A-2 well led the Operator and project partners to believe that the West Newton project represented a significant oil and gas discovery rather than the gas discovery as originally anticipated.

In December 2020, Reabold announced a further significant hydrocarbon discovery at West Newton. The drilling of the B-1Z well encountered a gross 62m hydrocarbon baring reservoir interval in the Kirkham Abbey target formation, with the overall Kirkham Abbey hydrocarbon column estimated to be at least 118m, significantly exceeding previous observations. This data suggests that the West Newton discovery would be the largest UK onshore discovery since 1973.

With enhanced porosities of over 14% observed on wireline logs, which compares favourably to the A-2 well, and with the oil water contact yet to be encountered, the Kirkham Abbey formation has been materially de-risked with evidence of good reservoir continuity.

West Newton B-1Z lies approximately 2.5km from the A-1 and A-2 discovery, confirming an areally extensive accumulation. As of December 2020, production casing is being run in preparation for well testing.

The latest updated hydrocarbon initially in-place volumetric estimates in respect of the Kirkham Abbey formation are:

Base Case:      

– Liquids: 146.4 million barrels (“mmbbl”) of oil initially in-place (“OIIP”);

– Gas: 211.5 bcf of gas initially in-place (“GIIP”)

Upside Case:  

– Liquids: 283 mmbbl OIIP

– Gas: 265.9 bcf GIIP

GaffneyCline, an international petroleum and energy consultancy, conducted a study on the West Newton field which resulted in an AA rating for carbon intensity, the best possible grade for low carbon emissions from potential upstream crude oil production. The study stated that the West Newton field has carbon intensities “significantly lower than the UK average and also compared to onshore analogues”.