LONDON (ShareCast) - (Sharecast News) - Upstream oil and gas investment company Reabold Resources updated the market on the start of preparatory activity ahead of drilling at the West Newton B site in PEDL 183, onshore UK on Wednesday.
The AIM-traded firm said that, following the oil and gas discovery made at the West Newton A-2 in 2019, the focus of activity on the license would be on appraising the "potentially significant" resources that had been discovered, as well as testing further potential in the identified exploration targets.

Key to that was the drilling at the West Newton B site, which would both further appraise the discovery made in the Kirkham Abbey formation, as well as target the deeper Cadeby formation, where oil shows were said to have been encountered from the drilling at West Newton A.

The 2020 programme would also include the planned testing at the A-2 well.

At West Newton B, Rathlin Energy UK - the operator of the project - was now conducting preparatory work at the site in compliance with landowner and regulatory agreements, and consistent with government guidance on the Covid-19 coronavirus pandemic.

It said that initial operations involved the completion of the access track and site, along with activities that were pre-operational conditions of Rathlin's Environment Agency and East Riding of Yorkshire Council permissions.

Such activities were described as "consistent" with the works envisaged to be carried out at the West Newton B site during the second quarter of 2020, as announced by the company on 20 February.

Reabold said it held a 39% effective economic interest in West Newton via its 59% equity interest in Rathlin, which is fully funded for activity across both A and B sites.

"During this period of global uncertainty and restrictions related to Covid-19, we are extremely pleased to be able to safely progress activity at the West Newton B site, where drilling will be a key driver of value for Reabold and its shareholders in 2020," said co-chief executive officer Stephen Williams.

"We are very excited by the potential scale and value of West Newton and look forward to providing further updates as operations move forward in due course."

At 1518 BST, shares in Reabold Resources were down 1.06% at 0.43p.

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