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LONDON (Alliance News) - Reabold Resources PLC on Monday said Rathlin Energy UK Ltd has signed a rig contract for the onshore UK West Newton appraisal well.
Reabold has a 37% equity interest in Rathlin. Rathlin, in turn, has a 67% interest and operates the PEDL 183 licence, where the West Newton project is located.
The appraisal well is due to spud in April and is designed to test two high-impact targets at West Newton.
Its first goal is to test the Kirkham Abbey formation gas discovery and its second is to appraise the Cadeby formation reef flank oil prospect. Krikham Abbey has a 72% chance of success and net present value of USD185 million, while the deeper Cadeby prospect has a 24% chance of success and net present value of USD850 million.
"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," said Reabold.
Shares in Reabold were down 3.6% at 0.60 pence on Monday.