Industry

West Newton: New drilling and testing plans plus £4.7m fundraising

Another well at Rathlin Energy’s West Newton-B site is due to be drilled in the second half of 2021, according to an update to shareholders today.

West Newton-B wellsite in Holderness, East Yorkshire. Photo: West Newton and Sproatley Gateway to the Gasfields

Reabold Resources, the leading investor in the licence in Holderness, East Yorkshire, said the new well, to be called WNB-2, was likely to be a deviated borehole into the Kirkham Abbey formation. Planning permission was granted in 2015, it said.

The company and another shareholder, Union Jack Oil, issued the latest in a flurry of statements about West Newton and the licence PEDL183.

Last week, Rathlin Energy, revealed it would seek planning permission to drill six more wells on an extension to the West Newton-A site. It would also apply for consent for 20 years of oil production at the site.

In November 2020, Rathlin drilled a sidetrack (WNB-1z) at West Newton-B. This followed the failure of the parent well (WNB-1) to find a commercial reservoir.

In October 2020, Rathlin confirmed it would seek consent for two new sites in the area, West Newton C and D, with a total of four more wells.

Extract from presentation by Union Jack Oil, 28 January 2021.

Testing plans

Reabold and Union Jack also said today the next well to be tested in PEDL183 would be the WNB-1z sidetrack. Testing was due to start in the first quarter of 2021, they said.

WNB-1z had targeted a structurally higher section of the Kirkham Abbey formation, known as the Kirkham Abbey platform, the companies said. It encountered a gross 62m hydrocarbon bearing reservoir interval and demonstrated 118m hydrocarbon column in the Kirkham Abbey formation, exceeding expectations.

The well was preferred as a potential producer to WNA-2, the second well drilled at West Newton-A, Reabold said. The porosity, hydrocarbon saturations and gas levels in WNB-1z compared favourably to WNA-2.

The results from WNB-1z had de-risked the southern part of West Newton field, as well as prospectivity across wider PEDL183, the company added.

On WNA-2, Reabold said testing was “anticipated to commence shortly after the test of the B-1z well is completed”.

The company said the best case for oil initially in place in WNA-2 was 146 million barrels. The best case gas initially in place for the well was 212 billion cubic feet.

Extract from presentation by Union Jack Oil, 28 January 2021.

Fundraising

Reabold also announced it had secured £4.7m to spend in East Yorkshire.

The fundraising was part of a £7.5m placing of more than 890 million shares.

£2.2m would be used for planned operations in the West Newton field, Reabold said. This included drilling and testing WNB-2. Another £2.5m would be used to develop PEDL183.

Reabold holds about 56% of PEDL183, through a stake in Rathlin Energy and a 16.665% direct interest.

More details

DrillOrDrop pages with key facts and timelines

West Newton-A

West Newton-B

West Newton-C

West Newton-D

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