Reabold Resources PLC (AIM:RBD) has described the West Newton project as “potentially one of the largest hydrocarbon fields discovered onshore UK”, as consultant RPS Energy valued the gas project in Yorkshire at some US$396mln (US$222mln net for Reabold’s 56% economic interest).
RPS ascribed some 197.6bn cubic feet (bcf) of ‘gross 2C unrisked technically recoverable resources for West Newton’s Kirkham Abbey formation and estimated that it has an 85.5% geological chance of success.
"We are very pleased with the results of the CPR, which provides external validation of our view that West Newton is a strategic asset that can play an important role in improving the UK's security of supply requirements for natural gas,” said Reabold co-chief executive Stephen Williams.
A new horizontal well planned for 2023 will aim to test the Kirkham Abbey formation, meanwhile, RPS also assessed other horizons at West Newton with the Spring Hill, Withernsea and Ellerby estimated to host a combined 363.7bcf of potentially recoverable resources – and the consultants deemed those prospects each have a 43% geological chance of success.
Reabold highlighted that the findings of the RPS competent persons report supports the West Newton partners’ conceptual development plan.
It meanwhile told investors that coming online potentially in 2026 the project can help alleviate the UK’s domestic gas shortfall and reduce reliance on imported gas.
Williams added: “West Newton's gas could supply 380,000 UK homes for many years, alleviating our reliance on imported gas.
“Furthermore, we are very excited by the prospective resource potential from Ellerby, Spring Hill and Withernsea, which combined are potentially larger than West Newton, and we would note that there remains considerable further running room on the licence beyond that covered by the CPR.
“We look forward to the drilling of the West Newton B-2 horizontal well that will be a key step in developing and exploiting the substantial resource potential in PEDL 183."
Reabold holds a 56% economic interest in West Newton through its majority (66.67%) shareholding in Rathlin Energy along with a direct project interest of 16.665%. Meanwhile, AIM-peer Union Jack Oil also holds a 16.665% interest in the project.