Reabold Resources plc (LON:RBD), the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, has today provided an update regarding the start of preparatory activity ahead of drilling at the West Newton B site in PEDL 183, onshore UK.
Following the oil and gas discovery made at the West Newton A-2 well in 2019, the focus of activity on the license will be on appraising the potentially significant resources that have been discovered as well as testing further potential in the identified exploration targets. Key to this programme is the drilling at the West Newton B site, which will both further appraise the discovery made in the Kirkham Abbey formation, as well as target the deeper Cadeby formation, where oil shows were encountered from the drilling at West Newton A. The 2020 programme also includes the planned testing at the A-2 well.
At West Newton B, Rathlin Energy (UK) Ltd (“Rathlin”), the Operator of the project, is now conducting preparatory work at the site in compliance with landowner and regulatory agreements, and consistent with government guidance on COVID-19. Initial operations involve the completion of the access track and site along with activities that are pre-operational conditions of Rathlin’s Environment Agency and East Riding of Yorkshire Council (ERYC) permissions.
Such activities are consistent with the works envisaged to be carried out at West Newton B site during Q2 2020 announced by the Company on 20 February 2020. Reabold holds an approximate 39 per cent. effective economic interest in West Newton via its 59 per cent. equity interest in Rathlin, which is fully funded for activity across both A and B sites.
Stephen Williams, co-CEO of Reabold, commented:
“During this period of global uncertainty and restrictions related to COVID-19, we are extremely pleased to be able to safely progress activity at the West Newton B site, where drilling will be a key driver of value for Reabold and its shareholders in 2020. We are very excited by the potential scale and value of West Newton and look forward to providing further updates as operations move forward in due course.”
