Industry

Reabold outlines drilling plans at second West Newton site in early 2020

West Newton B trenching 1

Rathlin Energy’s West Newton-B site. Photo: DrillOrDrop

An exploration company has told investors about plans to drill next year at a second site at West Newton in East Yorkshire.

Reabold Resources, which holds 35% of the site operator, Rathlin Energy, confirmed today it was in “advance discussions” to invest another £16m in cash and raise its stake up to almost 75%.

Last week, Reabold said it was “taking indications of interest from investors” for an equity placing of between £20m-£24m.

It said part of the proceeds would be used to “accelerate the permitted, two well work programme at the West Newton project”.

Today, a company spokesperson confirmed that Reabold had scheduled drilling two wells at the West Newton-B site, north of Hull, in 2020.

Once drilled, this would bring the total number of wells across two sites in the area to four. 

The latest statement followed the publication online of extracts from a Reabold Resources presentation. They indicated that a vertical well would be drilled at West Newton-B in the first quarter of the year. A second, horizontal well, would be drilled in the second quarter.

The wells have had planning permission since June 2015 but no work has been carried out at the site, apart from an archaeological survey.

Rathlin Energy has been exploring for hydrocarbons since 2013 at the original West Newton site, known as West Newton-A. The targets for two wells there were the Kirkham Abbey and Cadeby formations

According to the presentation extracts, the focus would now turn to the nearby West Newton-B. Reabold listed the key operations:

“Drill first well from West Newton B site, appraising Kirkham Abbey and targeting the Cadeby in a more optimal location

“Success in the Cadeby may lead to a refocus on that horizon, given its potential scale

“Current plan is to drill a second well at the West Newton B site to optimise appraisal of the Kirkham Abbey”

“Flow tests at West Newton B site to assess likely deliverability of development wells”

Another extract said:

“Two further wells permitted at West Newton B site, optimally located to define the deeper Cadeby oil play. Next well focussed on Cadeby reef flank: 24%CoS1 for NPV1 $850m ($340m – $425m net2), as well as intersecting the Kirkham Abbey.

“Cadeby intersected in A-2 well and oil bearing: reservoir quality (porosity), as expected, as poor. Seismic and geological model indicate significantly better reservoir quality at West Newton B location”

Results from drilling at West Newton-A earlier this year indicated the presence of oil, as well as the expected gas. Reabold described the find as “potentially the largest UK onshore gas field and potentially the largest hydrocarbon discovery onshore since 1973.

The new Reabold presentation added:

“The shift to oil from initial expectation of gas, as well as significant local infrastructure, increases potential for early monetisation through oil sales ahead of field development”

“Drilling and testing will help refine future work programme and move West Newton towards a field development plan.”

Flow testing at West Newton-A

190919 West Newton WNGTTGF

West Newton-A wellsite on 19 September 2019. Photo: West Newton Gateway to the Gas Fields

Flow testing on the second well at West Newton-A was suspended in late August 2019. Rathlin Energy said this was to analyse data and revise the well test to take account of the oil find.

Since then, equipment has been removed and there has been no activity at the site. DrillOrDrop understands that, as of last week, Rathlin Energy had not yet given the required 21 days notice of operations to one of the key regulators.

West Newton-B timeline

4 June 2015: East Riding of Yorkshire Council grants planning permission for exploration site and two wells at West Newton-B. Details

16 June 2015: Date of decision document granting planning permission and conditions. Link

2 August 2016: Environment Agency grants environmental permit. Details

6 December 2017: Rathlin tells residents that work on access road is due to be completed by end of March 2018. Details

6 November 2018: Rathlin Energy tells East Riding of Yorkshire Council “the merits of drilling the second well from West Newton-A are significant and represent the best option to move the project forward”. Details

DrillOrDrop key facts and timeline for West Newton-B

13 replies »

    • John Mager

      It is a simplified diagram to highlight the key characteristics of the reservoir. As such, unless a fault was a key component of the reservoir, it is not shown.

      You will have noted that the geology between the top of the reservoir and the surface are also not shown, and it is not to scale, vertically to horizontally.

        • A fault maybe a key feature of the structure / trap but not the reservoir, which is what the simplified diagram is showing.

        • Jon Mager

          Can you expand on why you feel ( or know ) that faulting is a key component of this particular reservoir, such that it, or they should be shown?

          For example, do you think or know that this reservoir is a fault trap, and that the omission of this information from the simplified diagram is a key omission for investors. (See fault traps in link below ).

          https://energyeducation.ca/encyclopedia/Oil_and_gas_traps

          Or do you feel that local fault information should have been included for reasons other than an understanding of the lithology and well targets?

          • Who is hewes62? You know my name but you hide yours.
            I have looked again at the Reabold chart and it doesn’t resemble any of the diagrams you seek to educate me with.
            You appear to be an expert so why not answer the questions you pose with reference to the Reabold diagram.
            The fact remains there is a fault running through the WN gasfield, oops, now described as an oilfield despite the reported enthusiasm about gas found there by Rathlin…….

            • Mr Mager

              You know my surname as I yours. How does knowing your Christian name have any bearing on this discussion?

              …..

              Re there being a fault running through the field.

              There may well be a fault or a few ( what shows at the surface may not be all you find in a reservoir ) running through the gas/oilfield. I have not seen anyone on here who would disagree.

              You say ‘oops’ …what for?

              Re answering my own question

              You asked why faults were not shown and I replied ( it’s not relevant to the purpose of the slide )

              But you said that the fault is a key feature of the reservoir. So I asked why. Now you ask me to answer my own question ( but you do not say why you think that faulting is a key feature of the reservoir ).

              So I conclude you don’t know. I suspect you are concerned about faulting in or near oil and gas reservoirs. If so.. just say so.

              So..to recap. The diagram you see here on DOD is a simplified diagram of the lithology of the reservoir, and, as faulting is not shown, it does not seem relevant to that lithology or the well targets.

              The issue you raised is not that there may be faulting in the reservoir, but why they are not shown ( your question).

              Regards. Mr Hewes

              Mining Engineer

  1. Rigs seem to be in demand at the moment!

    Meanwhile, I notice another airport has recently submitted its expansion plans. Puts things into perspective when more people are being repatriated to UK for ONE failed holiday company than ER can muster in UK.

  2. Add Luton Airport to that, as well.

    So, demand in UK for aviation fuel continues to rise. That is a FACT. Whether the antis would like it to be different is irrelevant. The UK needs to manage the REALITY, which is pretty simple. It is more environmentally “friendly” to produce the maximum volume of oil in the UK and process it in the UK than to ship it, or processed product, from thousands of miles away.

    Oh-and that includes diesel where UK currently imports a large % of its requirement from overseas. Ironic that some of that will find its way into antis diesels, who continue to post on DoD under fictional “titles”!

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