(Alliance News) - Reabold Resources PLC and Union Jack Oil PLC on Monday noted an increase in the reserves at the West Newton project in East Yorkshire.
West Newton is located on the PEDL183 licence. London-based Reabold holds a 59% stake in licence operator Rathlin Energy UK Ltd, while Bath-based Union Jack has a 17% holding in the licence.
The two noted Rathlin has undertaken a review following drilling at the West Newton A-2 well of a number of different data points, including core analysis, petrophysics, sedimentology, and hydrocarbon geochemicals.
As a result, Rathlin has upped the estimated hydrocarbon volumes at the Kirkham Abbey formation reservoir on West Newton.
The base case has 146.4 million barrels of oil equivalent, and the upside 283 million barrels. The base case for gas is 211.5 billion cubic feet, and the upside 265.9 billion cubic feet.
Reabold Co-Chief Executive Sachin Oza said: "The updated analysis of the West Newton asset not only confirms the likelihood the dominant phase of the Kirkham Abbey hydrocarbon in place is oil rather than gas, but also the volumes contained within the Kirkham Abbey are indicated to be significantly greater than those assumed by the existing competent persons report which was produced prior to the drilling of the A-2 appraisal well.
"We remain extremely excited by the potential of what is emerging as a large scale, conventional, onshore oil and gas asset. With Rathlin fully funded for a substantial work programme over the coming months, and with permits already in place for additional drilling at the West Newton B-site, we look forward to updating investors with future results as they become available."
David Bramhill, the executive chair at Union Jack, added: "The results of the operator's analysis confirm the estimated in-place hydrocarbon volumes at West Newton comprise a significant proportion of liquids, which represent a material increase over and above those figures provided by the existing CPR.
"We are looking at an onshore project with potential offshore resources, and to date, West Newton is demonstrating the elements required to become a significant conventional hydrocarbon development project in the future."
Reabold shares were 2.0% higher on Monday in London at 0.94 pence each, with Union Jack down 0.6% at 0.25p.
By George Collard; georgecollard@alliancenews.com
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Reabold Resources (RBD)
Union Jack (UJO)