Reabold, the investor in upstream oil and gas projects, today announced the results of the West Newton B drilling operations, which have exceeded pre-drill expectations, further suggesting that the West Newton discovery would be the largest UK onshore discovery since 1973. Drilling operations have been completed safely.

Highlights:

• B-1Z well encountered a gross 62 metre hydrocarbon bearing reservoir interval in the primary Kirkham Abbey target formation
• Overall Kirkham Abbey estimated hydrocarbon column is at least 118 metres, significantly exceeding previous observations
• The oil-water contact is yet to be encountered at West Newton
• Enhanced porosities of over 14 per cent. observed on wireline logs, comparing favourably to previous A-2 well
• The Kirkham Abbey formation is materially de-risked with evidence of good reservoir continuity
• West Newton B-1Z is approximately 2.5 kilometres from the A-1 and A-2 discoveries, confirming an areally extensive accumulation
• Production casing is being run in preparation for well testing

Following the announcement on 23 November 2020, the West Newton B-1Z side-track well reached a Total Depth of 2,114 metres (MD), in the Carboniferous interval. 18 metres of core has been successfully extracted from the primary target, the Kirkham Abbey Formation, and all planned logging operations have been completed.

Wireline logs indicate that a gross 62 metre hydrocarbon saturated interval has been encountered within the Kirkham Abbey Formation. In conjunction with the results of the B1 well, the overall hydrocarbon column in the accumulation is estimated to be at least 118 metres.

Furthermore, with the B-1Z sidetrack located approximately 2.5 kilometres south of the West Newton A-1 and A-2 wells, the results indicate a particularly extensive accumulation with good reservoir continuity.

Favourable reservoir characteristics were observed in the Kirkham Abbey, with porosities measuring over 14 per cent. from log data across sections of the interval.

Drilling operations are being concluded, and production casing is being run in preparation for testing of this extended interval.

The initial petrophysical data obtained from the West Newton B-1Z well correlates positively with the results from the West Newton A-1 conventional discovery well and A-2 appraisal well.

The secondary Cadeby objective was unsuccessful at this location, but the data gathered from this well will be used to inform its potential prospectivity elsewhere in the block.

Reabold holds a ca. 56 per cent. economic interest in West Newton via its ca. 59 per cent. shareholding in Rathlin, which, in turn, has a 66.67 per cent. interest in PEDL183. In addition, Reabold has a 16.665 per cent. direct licence interest in PEDL 183.

Stephen Williams, Co-CEO of Reabold, commented:
"We are delighted to be able to announce another significant discovery at the West Newton field.

"The B-1Z well has indicated substantial areal extent by discovering the Kirkham Abbey, located 2.5km from the previous A-2 discovery. With better-than-expected porosity and a positive comparison versus the A-2 well, the B-1 well has significantly increased the size of the observed hydrocarbon column, and we are yet to encounter an oil water contact demonstrating the potential for further upside."

Sachin Oza, Co-CEO of Reabold, commented:
"West Newton continues to surpass expectations and we are confident that it will be the largest onshore UK discovery since 1973.

"With more analysis to be done, we believe that these indications augur extremely well for the future of the West Newton project, which has the potential to be a meaningful and crucially local source of hydrocarbons for the Humber region."

Union Jack holds a 16.665% interest in this licence and David Bramhill, Executive Chairman of the company, commented:
“The initial results of the WNB1Z appraisal well exceeded our expectations.

“The most important aspect of this successful drilling exercise is that the operation was undertaken in a safe and competent manner by the drilling contractor and the joint venture operator.

“There remains an extensive number of technical studies to be carried out to complete analysis of the WNB1Z well data, including correlation of the A1, A2 and B1Z well results and updated resource volumetric estimates, all of which will have a bearing on the planning and timing of the testing programme which is the next important milestone in determining the development potential of the West Newton project.

“The preliminary results from this well vindicate Union Jack`s faith and financial commitment over the past two years to what Union Jack`s management has always believed to be an exceptional UK onshore hydrocarbon enterprise.”

Malcolm Graham-Wood (Malcy's Blog) further commented this morning:
"The bears of West Newton have well and truly been burnt off this morning as the partners announce a ‘further significant HydroCarbon discovery‘ with the B-1Z well coming in big time.

Every way you look at it the discovery is massively positive and could be the largest UK onshore discovery since 1973. The well encountered a gross 62m HydroCarbon bearing reservoir in the primary Kirkham Abbey target formation. Indeed, the overall column is estimated to be ‘at least 118m significantly exceeding previous observations ‘.

The key takeaway from this is that in my own view, the whole prospect has been de-risked by what is now effectively a 2.5km step-out. The second section looks like the first and has ‘evidence of good reservoir continuity’ so as it looks the same on the seismic it is one continuous reservoir.

This is backed up by the porosity numbers which at over 14% measured from log data across sections of the interval ‘comparing favourably’ with the A-2 well. In addition with no oil-water contact encountered in 118m this is unique.

I intend to write up more on both companies after I have had more detailed conversations with both managements in due course but this is a monster discovery by any measurement and it would probably be a commercial discovery offshore.

With RBD up only 20% and UJO 9% as I speak I think it is fair to say that the shares have by no means taken this find into account and they should both add meaningful market cap increases as bigger players get out the calculators…"

KeyFacts Energy: Reabold Resources UK country profile   l   Union Jack Oil UK country profile