Explorer Union Jack Oil PLC (LON:UJO) and natural resources investor Reabold Resources PLC (LON:RBD) provided separate updates on a Yorkshire onshore oil and gas fields that has all the hallmarks of a North Sea discovery in terms of its scale.
Some pretty punchy numbers emerged last month from an update on the West Newton well, which was suspended in August to revise and review the operation.
For while UJO, Reabold and operator Rathlin Energy initially thought they were testing a 20-metre gas column – which, in and of itself, isn’t a poor return - below the gas, in the Kirkham Abbey formation, was 45-metres of liquid hydrocarbon (crude oil).
In the latest missive, the two listed firms said pumping, surface separation, fluid storage tanks and other well testing equipment has now been sourced, while regulatory approvals to re-commence the well test are being sought,
Following this extended assessment, the well will be monitored for inflow, shut in and suspended pending further analysis.
Additionally, Reabold said planning permissions is in place for two more wells to test Kirkham Abbey and Cadeby formations respectively
UJO’s announcement repeated the updated estimates for PEDL183 licence, near Beverley, East Yorkshire, in which the company holds a near 17% stake and which is host to the West Newton A-1 discovery and the West Newton A-2 appraisal well.
The numbers, worked up by the operator Rathlin, suggest “base case volumetrics” of 146.4mln barrels of liquids and 211bn cubic feet of gas. The “upside case” puts the figures at 283mln barrels of crude and almost 266bn cubic feet of gas.
"Although highlighted in an RNS [news release] previously, what had become apparent is the materiality of the size and scale of the liquid and gas volumes in place at West Newton, which we believe are unique to UK onshore and more representative of offshore North Sea discoveries,” said UJO chief executive David Bramhill.
UJO and Reabold both raised money recently (£5mln and £24mln respectively) in a tough market and so are fully funded for the work required at West Newton.