Reabold Resources has revealed details of how the West Newton field on PEDL 183 on Humberside will progress once permission to go ahead is forthcoming.
The conceptual development plan for West Newton envisages a predominantly gas development project, with eight new horizontal wells and recoverable volumes of 35mln barrels of oil equivalent with a sales gas component of 203bn cubic feet (Bcf).
Initial plans are for a five-well development drilling campaign, with the first gas anticipated as soon as 2025 and plateau production rates of 44mln cubic feet per day of sales gas.
A further three wells would be drilled in 2028-2030, to maintain plateau production of sales gas.
West Newton is operated by Reabold-controlled Rathlin Energy, with Reabold itself having a 56% economic interest in the field. AIM-listed Union Jack Oil has a 16.7% holding.
Based on economic models, Reabold said West Newton has a gross pre-tax NPV(10%) of US$448mln and a pre-tax IRR (rate of return) of 87%, based on recoverable sales gas and small volumes of associated liquids.
Any potential future gas discoveries within the Greater West Newton area were not included in the modelling.
Next steps, said Reabold, are the completion of a Competent Person's Report (CPR), which is expected in the third quarter of this year with a first horizontal appraisal well planned for the first half of 2023.
This well would materially de-risk the project at a modest cost and will then allow a decision on a field development plan to be taken, said the statement.
Stephen Williams, Reabold’s co-CEO, added: "We are delighted by the results of work completed by RPS Group (LSE:RPS) and CoreLab, which have demonstrated the potential of West Newton as an extremely valuable gas development opportunity.
“Centred in an area of significant infrastructure and with substantial additional exploration potential within the licence, a development at West Newton could deliver substantial volumes of low-carbon gas and also facilitate further success in the Greater West Newton Area.
"These studies are the beginning of an exciting new chapter for this project, which we expect will see Reabold drilling multiple, high-impact wells at West Newton in the coming years."