Reabold Resources PLC (AIM:RBD) has detailed progress towards a new well programme at the West Newton project, onshore UK in Yorkshire, where new data analysis has pointed to additional upside in the project.
The company, in a statement, noted that alongside its partners it has continued to analyse the geophysical, petrophysical and test data from the West Newton A and B wells.
This desktop work has confirmed the likelihood of intersecting good reservoir quality that, when taken in conjunction with the optimised drilling and completion methods, is expected to deliver good well productivity from a horizontal well from the West Newton B site, Reabold highlighted.
As a result, the company said the joint venture has committed to the specific, optimised well path for WN B-2.
It anticipates a multi-well development programme, leveraging an optimised drilling and completion process, which is set to begin in the second half of 2023.
Additionally, Reabold's technical review of the PEDL 183 licence (which is host to West Newton) has unveiled a potentially significant discovery at the Crawberry Hill area, where drilling took place previously in 2013.
This discovery could supplement the substantial resource within PEDL 183 offered from the West Newton trend, Reabold noted.
Moreover, the company said: “Reabold believes the apparent discovery at Crawberry Hill to be an exciting appraisal opportunity potentially significantly enhancing the already strategic asset that is PEDL 183.”
Joint venture partner Rathlin Energy - which is part-owned by Reabold, is operator of PEDL 183 and holds 66.67% of the project equity – has decided, due to risk management, to seek to divest a portion of its stake in the licence.
Reabold effectively holds a 56% economic interest in PEDL 183 between its 16.665% project equity and its 59% equity holding in Rathlin.
It noted that it is fully funded for its direct participation in West Newton B and said it could potentially provide additional financing to Rathlin from a future receipt of funds from its previous asset divestment to Shell in the North Sea.
Elsewhere, in the North Sea, Reabold noted that a new competent person's report (CPR) has been completed, covering four licence blocks.
The CPR on four of Reabold's North Sea licences has confirmed significant resource potential, it said.
It outlines the potential across Reabold's key central and northern North Sea assets, including material contingent resources at the Oulton discovery of 11mln barrels whilst the mean net prospective resources were estimated at some 211mln barrels oil equivalent.
Separately, the company also noted the start of its share buyback programme, which is slated to begin today.
Chief executive Stephen Williams, meanwhile, commented: "The ongoing technical work related to West Newton has given the JV a high level of confidence in the planned location for the upcoming B-2 horizontal well, with drilling targeted in H2 2023.
“That, combined with the exciting and highly material potential we have identified at Crawberry Hill, and the confirmation of the prospectivity of the North Sea assets as confirmed by the CPR, is reflected in today's announcement that we are beginning the process of returning excess cash to shareholders by undertaking an initial up to £750,000 share buyback.
“We believe that this represents the most effective way that Reabold can access additional resource on a per share basis for its investors, whilst we await the drilling of West Newton B-2."