LONDON (ShareCast) - (Sharecast News) - Reabold Resources announced on Monday that the next well at West Newton, following the successful West Newton A-2 (WNA-2) appraisal well, had now spud.
The AIM-traded firm has a 56% economic interest in the conventional West Newton field, located onshore UK on licence PEDL 183, with Rathlin Energy UK being the operator.

It said the objectives of the WNB-1 well were to evaluate the extent of the hydrocarbon accumulations found in the Kirkham Abbey formation by the WNA-2 well in June 2019.

The well would also test the reservoir properties of the deeper Cadeby formation which, if found to be hydrocarbon-bearing, could add "significantly" to the value of the West Newton field.

In November 2019, the operator provided updated hydrocarbon initially in-place volumetric estimates in respect of the Kirkham Abbey formation post drilling of the WNA-2 well, with a base case of 146.4 million barrels of oil initially in-place and 211.5 billion cubic feet of gas initially in-place.

The upside case, meanwhile, had 283 million barrels of oil initially in place and 265.9 billion cubic feet of gas initially in place.

Reabold said those volumes did not include prospective resources in the Cadeby formation, from which the West Newton A-1 well recovered oil saturated core and the WNA-2 well encountered oil shows.

The Cadeby was expected to have better reservoir development at the WNB-1 location.

It said the West Newton field is situated close to existing infrastructure, and "at the heart" of the Zero Carbon Humber project.

The borehole would be drilled to a depth of about 2,000 metres, with completion expected to take six to 10 weeks.

Once completed, the drilling rig would be demobilised from the site over a period of around one week.

"With the drilling of the West Newton B-1 well having commenced, we are a key step closer to proving up the significant resource base we believe we have at West Newton," said co-chief executive officer Sachin Oza.

"Reabold's majority interest in the West Newton field means that success could prove transformational for the company and its shareholders.

"We look forward to providing an update once drilling has been completed in six to 10 weeks."

At 1257 BST, shares in Reabold Resources were down 2.83% at 0.58p.

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