Reabold, the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, is pleased to announce an update from Rathlin Energy (UK) Limited ("Rathlin" or the "Operator"), in which Reabold holds a 59 per cent. equity interest, in respect of the estimated in-place oil and gas volumes of the West Newton area contained within onshore UK licence PEDL183.
PEDL183 covers an area of 176,000 acres and is situated in East Yorkshire within the onshore UK part of the Southern Permian Basin. Rathlin holds a 66.67 per cent. interest in this licence, which contains the West Newton A-1 discovery well and the West Newton A-2 appraisal well. Both wells have reservoirs within the Permian Zechstein geological group, in particular in the Kirkham Abbey geological formation.
In the United Kingdom, the Zechstein reservoirs of the Southern Permian Basin have been explored and produced largely in the offshore Southern North Sea, with limited exploration in the immediately neighbouring onshore. They have, by contrast, been extensively and successfully explored and produced in the Netherlands, Germany and Poland, providing multiple analogues to West Newton.
Subsequent to the drilling of West Newton A-2, the Operator has undertaken a number of technical studies including core analysis, petrophysical evaluation, sedimentology, and hydrocarbon geochemical characterisation, which have been reintegrated with the results of the pre-existing 3D seismic survey and West Newton A-1 well. As a result of these studies Rathlin has upgraded the estimated volumes of hydrocarbons in place in the West Newton Kirkham Abbey formation reservoir.
The information contained herein is the Operator's internal assessment of hydrocarbons in place and should not be construed as an indication of ultimately recoverable resources in accordance with an internationally recognised standard. An independent Competent Person's Report is being commissioned to estimate resources separately.
· The integrated study indicates a significant upgraded volume of estimated hydrocarbons in place in the Kirkham Abbey formation reservoir of West Newton consisting of a significant volume of oil below a gas cap also of potentially significant size
· Base Case:
o Liquids: 146.4 million barrels ("mmbbl") of oil initially in-place ("OIIP");
o Gas: 211.5 billion cubic feet ("bcf") of gas initially in-place ("GIIP")
· Upside Case:
o Liquids: 283mmbbl OIIP
o Gas: 265.9bcf GIIP
Basis for Re-evaluation of the Kirkham Abbey Formation Reservoir
The Operator has provided an updated technical analysis of the West Newton Kirkham Abbey Formation reservoir, including:
· Evaluation of drilling results from the West Newton A-2 well, particularly petrophysical, fluid saturation, sedimentological and diagenetic analyses;
· Identification of an oil leg in the Kirkham Abbey reservoir in the West Newton A-2 well, based on the "C5+" readings in the mud gas (an industry standard means of determining fluid type in a reservoir); analysis of drilling samples; fluorescence from core and surface samples; and the results of pulsed-neutron downhole logs;
· Analysis of the 28 metre physical core recovered from the Kirkham Abbey reservoir, yielding key sedimentological and depositional information, which has been tied to the petrophysical interpretation of downhole log data;
· Integration of these well results into the reflection and inversion volumes of the 3D seismic survey, which covers the entirety of the West Newton area; and
· Updated ranges of reservoir rock volumes and parameters including, porosities, hydrocarbon saturations and fluid characterisation have been derived, and combined to arrive at a revised range of in-place hydrocarbon estimates.
Sachin Oza, Co-CEO of Reabold, commented:
"The updated analysis of the West Newton asset not only confirms the likelihood that the dominant phase of the Kirkham Abbey hydrocarbon in place is oil rather than gas, but also that the volumes contained within the Kirkham Abbey are indicated to be significantly greater than those assumed by the existing CPR which was produced prior to the drilling of the A-2 appraisal well.
We remain extremely excited by the potential of what is emerging as a large scale, conventional, onshore oil and gas asset. With Rathlin fully funded for a substantial work programme over the coming months, and with permits already in place for additional drilling at the West Newton B-site, we look forward to updating investors with future results as they become available."