The industry regulator, the North Sea Transition Authority (NSTA), has extended the deadline for drilling plans at the West Newton field in East Yorkshire, it was reported today.

The licence, PEDL183, had required Rathlin Energy to drill and test a new well by the end of this month (June 2024). The company had also committed to recomplete or sidetrack one of the existing exploration wells and test it by the same date.

A fortnight ago, it was confirmed that Rathlin would fail to meet its obligations and was negotiating with NSTA.

The delay was blamed on Rathlin’s “funding shortfall”. In September 2023, the company admitted it needed more money to pay for drilling and testing at West Newton.

In a statement today, one of the partners in PEDL183, Reabold Resources, said the NSTA had agreed a revised minimum required work programme. This comprised:

• Re-enter and recomplete or sidetrack one of the currently suspended wells by 30 June 2026
• Re-enter and recomplete or sidetrack one of the remaining suspended wells or drill and complete a new deviated horizontal well by 30 June 2027
• Submit a field development plan by 30 June 2027

The West Newton field has two sites, A and B.

The A site has two wells, drilled in 2013 and 2019. This site has planning permission for 20 years of oil production and four more wells on an expanded pad.

The B-site drilled one well and a sidetrack in 2020. In 2021, formation damage was reported.  There is planning permission for a second well until 2025. In August 2023, plans for this well were delayed for a third time until 2024.

Reabold, which has a 56% stake in PEDL183, said the partners were likely to approve initial plans to recomplete an existing West Newton well to establish whether there was sustained gas flow. This work was due to start during 2024, Reabold said.

Reabold’s co-chief executive, Sachin Oza, said:

“With the necessary approval from the NSTA for the revised work programme for PEDL 183 secured, Reabold can continue to progress this important UK gas project in the most optimal manner.”

He said a phased development plan would “allow gas production to be brought to market within months of drilling”. This would, Mr Oza said, generate “significant early cash flow” while the partners worked on the field development plan.

A West Newton feasibility study, commissioned by Reabold and also reported today, concluded that an initial single horizontal well and gas export plan could “accelerate production and cash flow whilst requiring limited capital expenditure”.

The study estimated the project infrastructure would cost about £12m. The project would include a 3.5km pipeline from West Newton A to the national gas transmission system, which does not have planning permission.

• Look out for our review of drilling and delays at West Newton, coming soon.

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