(Alliance News) - Reabold Resources PLC said Thursday it awaits regulatory approval in order to re-start testing at the A-2 well at West Newton licence area in East Yorkshire, onshore UK.
Reabold Resources has a 39% stake in West Newton, via its 59% holding in operator and 67% shareholder Rathlin Energy UK Ltd. Union Jack Oil PLC holds a direct 17% stake in West Newton.
Following the successful drilling of the A-2 well, the extended well test operations were paused in late August in order to design a new test, which would be better suited to evaluate significant oil column encountered in the well.
The new test has now been re-designed by the Rathlin Energy, and works will start following the regulatory approval.
Reabold also said that the bottom hole drill location for the West Newton B-1 well has been finalised and preparations are underway for the works, required before the start of operations. The drilling is expected to begin during the second quarter of 2020.
Co-Chief Executive Officer Sachin Oza said: "As we approach the commencement of the test programme at A-2, and more particularly the additional drilling at West Newton B, we expect to see results that will prove up the substantial value inherent in an asset of this nature."
In another statement, Union Jack Oil also said that the new test has been designed for the A-2 well and testing works will commence after regulatory approvals are obtained.
Reabold shares were trading 3.0% lower in London at 0.64 pence each on Thursday, while Union Jack Oil shares were 4.8% lower at 0.15 pence each.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Reabold Resources (RBD)
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