rbs27 Jun 2019 10:18
In our view, West Newton is extremely attractive, due to both its scale and its location and we are delighted to have been able to fund the appraisal well towards potentially proving up its considerable value.
On 17 June 2019, the Company was pleased to announce that the West Newton A-2 appraisal well had been successful, which confirms Connaught's previous assessment that West Newton could potentially be the largest UK onshore gas field, and the largest hydrocarbon discovery onshore UK since 1973. The results of the appraisal well have exceeded our expectations and have also shown a significant liquid hydrocarbon volume which has increased our excitement and the future value of the field materially. The deeper exploration target in the Cadeby formation encountered hydrocarbon shows with an oil saturated core.
The data from the A-2 appraisal well is subject to further testing, which is required the determine flow rates and inform the forward work programme. The extended well test operations are expected to commence during Q3 2019.
From its onshore location near Hull and with nearby infrastructure available, we anticipate that West Newton can provide material volumes of hydrocarbons for the UK's energy needs at low cost and in the near term.
Success in a project of this scale would undoubtedly be transformational for Reabold and its investors. Permitting is in place for an extended well test planned for Q3 2019. We look forward to the well test in the coming weeks and potentially generating early cash flow from the testing programme.
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