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Upgraded Potential Volumes - West Newton

Mon, 11th Nov 2019 07:00

RNS Number : 8849S
Reabold Resources PLC
11 November 2019
 

 

11 November 2019

 

Reabold Resources Plc

("Reabold" or the "Company")

Upgraded Potential Volumes for the West Newton Kirkham Abbey Formation Reservoir

 

Reabold, the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, is pleased to announce an update from Rathlin Energy (UK) Limited ("Rathlin" or the "Operator"), in which Reabold holds a 59 per cent. equity interest, in respect of the estimated in-place oil and gas volumes of the West Newton area contained within onshore UK licence PEDL183.

 

PEDL183 covers an area of 176,000 acres and is situated in East Yorkshire within the onshore UK part of the Southern Permian Basin. Rathlin holds a 66.67 per cent. interest in this licence, which contains the West Newton A-1 discovery well and the West Newton A-2 appraisal well. Both wells have reservoirs within the Permian Zechstein geological group, in particular in the Kirkham Abbey geological formation.

 

In the United Kingdom, the Zechstein reservoirs of the Southern Permian Basin have been explored and produced largely in the offshore Southern North Sea, with limited exploration in the immediately neighbouring onshore. They have, by contrast, been extensively and successfully explored and produced in the Netherlands, Germany and Poland, providing multiple analogues to West Newton.

 

Subsequent to the drilling of West Newton A-2, the Operator has undertaken a number of technical studies including core analysis, petrophysical evaluation, sedimentology, and hydrocarbon geochemical characterisation, which have been reintegrated with the results of the pre-existing 3D seismic survey and West Newton A-1 well. As a result of these studies Rathlin has upgraded the estimated volumes of hydrocarbons in place in the West Newton Kirkham Abbey formation reservoir.

 

The information contained herein is the Operator's internal assessment of hydrocarbons in place and should not be construed as an indication of ultimately recoverable resources in accordance with an internationally recognised standard. An independent Competent Person's Report is being commissioned to estimate resources separately.

 

Highlights

·      The integrated study indicates a significant upgraded volume of estimated hydrocarbons in place in the Kirkham Abbey formation reservoir of West Newton consisting of a significant volume of oil below a gas cap also of potentially significant size

·      Base Case:

Liquids: 146.4 million barrels ("mmbbl") of oil initially in-place ("OIIP");

Gas: 211.5 billion cubic feet ("bcf") of gas initially in-place ("GIIP")

·      Upside Case:

Liquids: 283mmbbl OIIP

Gas: 265.9bcf GIIP

 

Revised Volumetric Assessment

Based on the revised technical studies noted above, the Operator has provided volumetric estimates for two scenarios, a Base Case and an Upside Case, as follows:

 

Base Case and Upside Case In-place Volumes

Case

Liquids
(mmbbl)

Gas
(bcf)

Base Case

146.4

211.5

Upside Case

283.0

265.9

 

Source: Operator data

 

Basis for Re-evaluation of the Kirkham Abbey Formation Reservoir

The Operator has provided an updated technical analysis of the West Newton Kirkham Abbey Formation reservoir, including:

·      Evaluation of drilling results from the West Newton A-2 well, particularly petrophysical, fluid saturation, sedimentological and diagenetic analyses;

·      Identification of an oil leg in the Kirkham Abbey reservoir in the West Newton A-2 well, based on the "C5+" readings in the mud gas (an industry standard means of determining fluid type in a reservoir); analysis of drilling samples; fluorescence from core and surface samples; and the results of pulsed-neutron downhole logs;

·      Analysis of the 28 metre physical core recovered from the Kirkham Abbey reservoir, yielding key sedimentological and depositional information, which has been tied to the petrophysical interpretation of downhole log data;

·      Integration of these well results into the reflection and inversion volumes of the 3D seismic survey, which covers the entirety of the West Newton area; and

·      Updated ranges of reservoir rock volumes and parameters including, porosities, hydrocarbon saturations and fluid characterisation have been derived, and combined to arrive at a revised range of in-place hydrocarbon estimates.

 

 

Sachin Oza, Co-CEO of Reabold, commented:

"The updated analysis of the West Newton asset not only confirms the likelihood that the dominant phase of the Kirkham Abbey hydrocarbon in place is oil rather than gas, but also that the volumes contained within the Kirkham Abbey are indicated to be significantly greater than those assumed by the existing CPR 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."

 

Qualified Person's Statement

Pursuant to the requirements of the AIM Rules - Note for Mining and Oil and Gas Companies, the technical information contained in this announcement has been reviewed by Mr Jon Ford as a Qualified Person. Jon has more than 38 years' experience as a petroleum geologist, holds a BSc in Geology & Geophysics from the University of Durham, is a Fellow of the Geological Society of London, and is a member of the European Association of Geoscientists & Engineers and the Petroleum Exploration Society of Great Britain.

 

For further information please contact:

Reabold Resources plc

Stephen Williams

Sachin Oza

c/o Camarco

+44 (0) 20 3757 4980

Strand Hanson Limited (Nominated and Financial Adviser)

James Spinney

Rory Murphy

James Dance

 

+44 (0)20 7409 3494

  

Stifel Nicolaus Europe Limited - Joint Broker

 

Callum Stewart 

 

Nicholas Rhodes

 

Ashton Clanfield

+44 (0) 20 7710 7600

 

 

 

Whitman Howard Limited - Joint Broker

Nick Lovering

Grant Barker

 

+44 (0) 20 7659 1234 

Turner Pope Investments (TPI) Ltd - Joint Broker

Andy Thacker

Zoe Alexander

+44 (0) 20 3657 0050



Camarco

James Crothers

Ollie Head

Billy Clegg

+44 (0) 20 3757 4980

 

 

 

Notes to Editors

Reabold Resources plc is an investing company investing in the exploration and production ("E&P") sector. The Company's investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world. 

As an investor in upstream oil & gas projects, Reabold aims to create value from each project by investing in undervalued, low-risk, near-term upstream oil & gas projects and by identifying a clear exit plan prior to investment.

Reabold's long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.

Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company's strategy.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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