26th Apr 2019 10:58
LONDON (Alliance News) - Oil & gas focused-investment company Reabold Resources PLC said on Friday it has started drilling operations at the West Newton A-2 appraisal well, onshore UK.
United Oil & Gas PLC also noted the start of drilling operations on Friday.
Drilling operations at the well will consist of one well drilled into the Kirkham Abbey Shoal gas formation, which will de-risk 189 billion cubic feet equivalent of contingent resources.
After that, drilling will target the deeper Cadeby Reef formation, which has gross prospective resources of 79.1 million barrels of oil equivalent.
United Oil & Gas holds a 17% interest in UK onshore licence PEDL183, which contains the West Newton A-1 gas discovery.
Reabold Resources meanwhile, holds a 37% stake in Rathlin Energy UK Ltd, which has a 67% operating interest in PEDL183.
Pre-drill estimates have given a 72% chance of success and a gross net present value of USD247 million for Kirkham Abbey, while the Cadeby formation has a 24% chance with a gross NPV of USD850 million.
The West Newton A-2 well will be drilled to a total depth of 2,061 metres below ground level, which is expected to take 40 days to complete.
"In our view, West Newton is extremely attractive, due to both its scale and its location. The West Newton A-1 discovery suggests that we may have one of the largest onshore UK gas fields and we are delighted to have been able to fund the appraisal well that can potentially prove up its considerable value. If successful, West Newton's close proximity to abundant infrastructure and demand centres mean that it could be an important near-term addition to supplying UK energy demand," said Stephen Williams, co-chief executive of Reabold.
Shares in Reabold Resources were down 2.9% at 0.63 pence, while United Oil & Gas shares were up 4.5% at 3.50 pence on Friday.
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