Reabold’s presentation by CEO Stephen Williams at the Shares Investor Evening in Edinburgh confirmed the answer to a most important question over funding of the West Newton drilling campaign planned for 2024.
After an extended period of little news, to the frustration of shareholders of not only Reabold Resources but those of Union Jack, West Newton is now to be mobilised this year.
This asset drew enormous interest and excitement a few years ago, the ‘biggest onshore UK gas discovery’ in over 50 years.
A drilling and testing operation commenced in 2021 with an initial level of confidence shown by the operator Rathlin Energy but by August 31st, it was announced that the Kirkham Abbey reservoir appeared to be sensitive to the drilling and completion fluids. There were clear signs of reservoir damage in near wellbore areas preventing a more significant flow . Testing failed to return all of the completion fluids injected into the formation and a measurable flow of hydrocarbons was not achieved.
This pretty much followed suit throughout the drilling, with following lab analyses determining that the formation was sensitive to aqueous fluids and that previous drilling of the West Newton wells with water-based mud had created near wellbore damage in the Kirkham Abbey reservoir, through the creation of very fine rock fragments while drilling, potentially plugging up the natural porosity and permeability of the reservoir which created a detrimental effect on its ability to flow.
Further analyses determined that the use of dilute water-based acids during well testing also adversely affected the flow characteristics of the Kirkham Abbey reservoir.
It was decided that using an oil-based drilling fluid, damage to the oil and gas reservoir could be minimised and this will be the process utilised when re-commencing operations this year.
It has been a concern recently that Rathlin Energy had been unable to meet their financial obligations and that without a farm-in partner, the project would not get off the ground. However, this is no longer the case as Reabold Resources have now confirmed their offer of assistance should the need arise and that mobilisation will be instigated in 2024.
This really must be music to David Bramhill’s ears and to those of his shareholders in Union Jack Oil. With the company fully funded for drilling, this year is just getting better and better.
Many scorned the comments of the Executive Chairman in a recent interview when he showed such confidence in getting this asset off the ground this year. Note, they also berated his comments that the Penistone Flags would also be mobilised this year. Now, what will those naysayers be thinking on that now?
I am very excited for myself and fellow shareholders for 2024.
A well in the United States nearing the spud date, a well at West Newton drilling into a substantial gas play, a well at Wressle to be drilled and more.
