Reabold Resources PLC (AIM:RBD) told investors it welcomes the government's decision to lift the moratorium on hydraulic fracturing onshore in the UK.
The company, in a statement, said the change could have a “materially beneficial” effect on the company’s onshore business, including the potential to exploit additional resources within its existing licence interests and other potential opportunities.
Onshore UK, Reabold has an interest in the West Newton project, located in Yorkshire.
In June, a development plan was unveiled for West Newton which is envisaged as a five-well project.
The plan envisages a predominantly gas development project with eight recoverable volumes of 35mln barrels of oil equivalent with a sales gas component of 203bn cubic feet (Bcf).
First gas anticipated in 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.