Positive well test results, following the drill of the West Newton A-2 well, empowered Reabold Resources to declare that West Newton could potentially be UK’s largest onshore gas field.
Reabold Resources operates in the UK via Rathlin Energy (UK) Limited, owning 37.08% of shares in license PEDL 183. Along with Rathlin, Union Jack and Humber Oil & Gas hold 16.66% each in this license, containing the West Newton A-1 discovery well and West Newton A-2 appraisal well.
The West Newton A-1 gas discovery is on trend with the prolific Hewett gas field complex. Regionally, West Newton and Hewett are located in the Southern Permian Basin which contains approximately 74 MMboe and 250 MMbbls of combined in production areas in Poland, Germany and the Netherlands.
The main well targets were to appraise the Upper Permian Kirkham Abbey Fm which had an estimated 72% chance of success and an NPV of $247m* and to test a deeper Upper Permian Cadeby Fm reef flank oil prospect, considered by Rathlin to have an NPV of $850m and an estimated 24% chance of success*.
A report by energy research firm Deloitte gave a “best estimate” contingent resource of 31.5 MMboe within the Kirkham Abbey Shoal Fm. To this, the Cadeby Reef Fm is considered upside potential, with a gross best estimate prospective resource of 79.1 MMboe. Volume expectations will initially be updated following further core and log analysis, then again following the extended well test.
- A net 65 m hydrocarbon saturated interval has been encountered from within the Kirkham Abbey Fm indicating a substantial hydrocarbon accumulation, including a significant liquids component.
- Significant liquids component identified from core (28 metres extracted) and logging data
- Extended well test planned for Q3 2019 to establish flow rates and help determine the future drilling and development program at the West Newton project
- Hydrocarbon shows within the deeper Cadeby Fm, a secondary target. The intersection is consistent with the West Newton A-1 well from which an oil saturated core was recovered. This is highly encouraging, and the formation is planned to be intersected in the future from the West Newton-B well location, where optimal reservoir development is expected, and planning permission is already in place.
* This estimate is based on the economic evaluations and most recent price forecasts provided by Deloitte LLP for the CPR, updated by Connaught Management Estimate