The planned lower-volume frack at the West Newton-A wellsite in East Yorkshire is likely to “materially reduce” available cash at an oil and gas company, it has emerged.

The total cost of entering and recompleting the A-2 well has been estimated at £3m.

Reabold Resources, the majority owner of the oil and gas field, had cash balances of £4m in June 2026.

Directors said this was “sufficient” to fund the group’s general and administrative expenditure, committed obligations and on-going non-project expenditure.

But they said:

“The Group’s current strategy includes the recompletion of the A-2 well at West Newton, which is expected to materially reduce the Group’s available cash resources and the Group will likely require additional funding thereafter in order to continue its planned activities and future obligations.”

The statements were in annual accounts for Rathlin Energy, Reabold’s subsidiary and the West Newton operator. The accounts were published today by Companies House but delayed since 30 September 2026.

According to the accounts, Rathlin’s cost share of the West Newton operation, estimated at £2m, would be funded from a £5m loan from Reabold, due to mature on 30 June 2027.

Work on the West Newton-A2 well has been scheduled for the final quarter of 2026. But, with just eight weeks remaining, there has been no reported work on the site and question marks over whether the operation will be completed on time.

A local environmental campaigner has brought a legal challenge against the Environment Agency over the environmental permit for the West Newton-A frack. He is also seeking a High Court injunction to halt work until the permit challenge has been resolved.

The accounts warned:

“the timing and availability of any future funding remain uncertain and may be significantly influenced by the outcome of the recompletion of the A-2 well.”

If the well recompletion were unsuccessful (described by the accounts as an unlikely event) the Group’s ability to secure further financing may be “adversely affected”.

The accounts acknowledged:

“there can be no assurance that the planned strategy will achieve the anticipated outcome or support the Group’s future funding requirements required to realise its assets and discharge its liabilities”.

They said: “there exists a material uncertainty concerning the ability of the Company to continue as a going concern”.

The accounts, which cover the year to December 2025, do not mention management changes at Union Jack Oil, a partner in the West Newton licence.

New Union Jack directors, appointed in August 2026, have said they are carrying out a “detailed review” of the company’s entire asset portfolio and discussions were underway with partners on some company interests.

Craig Howie, Union Jack’s executive chairman, said:

“We will be disciplined in where we allocate capital and only invest in projects with a clear commercial rationale and realistic prospect of success.”

The accounts also do not refer to Reabold’s failed takeover bid for Union Jack Oil.

Other details

Rathlin reported that its accounts did not include a strategic report, under an exemption in the Companies Act.

Rathlin said it had used CBIZ for an independent audit. But it said CBIZ was not registered as a UK statutory auditor so its audit report did not constitute a statutory auditor’s report under the Companies Act and so had not been included in the financial statements.

Rathlin also reported that West Newton decommissioning costs were now “expected to be incurred in 2070”. The company said this date had been extended in 2024 from 2033. Rathlin said:

“The revision to the timing was based on the latest estimates of the economic life of the field and the geological chance of success at West Newton”

In March 2025, Rathlin appointed Paul Harris, former chief executive of NEO Energy, as a non-executive director.

Key figures

From annual accounts for Rathlin Energy (UK) Limited for the year ending December 2025

Loss for the year: £778,000 (20An24: £804,000)

Admin expenses: £703,000 (2024: £775,000)

Net cash used in operating activities: loss of £715,000 (2024: loss of £673,000)

Total cash capital expenditure: £548,000 (2024: £805,000)

Cash and cash equivalents at end of the period: £158,000 (2024: £723,000)

Total employee costs: £372,000 (2024: £289,000)

Average number of employees: 5 (2024: 4)

Total assets: £21,931,000 (2024: £22,934,000

Total liabilities: £1,591,000 (2024: £1,816,000

Charges for management services from Connaught, former 20.4% shareholder: £278,689 (2024: £848,003)

Ownership of Rathlin Energy by Reabold Resources: 79.8%