Reabold Resources, the investing company focused on developing strategic gas projects for European energy security, is pleased to confirm that Rathlin Energy (UK), operator of PEDL183 in East Yorkshire, which holds the West Newton natural gas field, has provided notice that the preparatory works for the planned recompletion, stimulation and testing programme at the West Newton A-2 ('WNA-2') well will commence shortly.
Highlights:
- Notice provided that work will commence as part of the WNA-2 recompletion, stimulation and testing programme
- Authorities for Expenditure ("AFEs") issued covering access road works and procurement of long-lead items, including specialty chemicals
- Final engineering activities and contract awards currently underway
- Operator plans to install a new completion string and undertake a testing programme
- Total gross programme cost estimated at approximately £2.5 million, excluding contingency; Reabold funded following its equity placing earlier this year
- Feasibility study underway to evaluate co-location of power generation and data centre assets at the West Newton site
- Community benefit fund associated with West Newton to be put in place
Preparatory Works Underway and Notice of Community Benefit Fund
Rathlin, operator of the Licence, has provided notice of the commencement of the preparatory work ahead of the planned recompletion, stimulation and testing programme at WNA-2.
AFEs have been issued covering access road works at the West Newton 'A' Well Site and the procurement of long-lead items required for the programme, including specialty chemicals used in the stimulation process.
Final engineering activities and contract awards are currently underway. Subject to the completion of these preparatory activities, the well will be recompleted, followed by a period of testing.
Rathlin also announced that a community benefit fund associated with West Newton will be put in place.
The Company believes this is a low risk, low cost activity that will provide important data to further derisk the project and provide important information in optimising future production wells.
The total gross cost of the programme is estimated at approximately £2.5 million, excluding contingency. Reabold is well funded to support its share of this expenditure following the Company's successful raising of £4.16 million earlier in the year through the issue of equity at the prevailing market price.
Data Centre and Power Generation Feasibility Study
In parallel with preparations for the WNA-2 programme, a feasibility study is underway to evaluate the potential to co-locate power generation and data centre assets at the West Newton site, utilising gas produced from the field to power on-site infrastructure. The Company believes that West Newton's onshore location, scale and proximity to existing grid and transport infrastructure make it well suited to such applications, and further updates will be provided as this work progresses.
West Newton Background
The West Newton natural gas field is located within the Licence, onshore UK in East Yorkshire. Reabold holds a c.69.9% economic interest in the Licence and, therefore, a 69.9% economic interest in West Newton, via its c.79.8% shareholding in Rathlin, which, in turn, has a 66.67% interest in the Licence. In addition, Reabold has a 16.665% direct Licence interest.
West Newton is regarded as one of the largest onshore hydrocarbon discoveries in the UK and the Company continues to believe the project has the potential to make a meaningful contribution to domestic energy supply and UK energy security.
Stephen Williams, Co-CEO of Reabold, commented:
'We are delighted that notice for the preparatory work for the upcoming West Newton programme, ahead of the WNA-2 recompletion and testing, has been provided. This signals the commencement of a significant operational milestone for the project and an exciting moment towards unlocking the full value of West Newton.
'We remain highly confident in the strategic value of West Newton, given the scale of the resource, its onshore location and the growing importance of enhancing the UK's domestic energy security. Reabold is well funded following our equity placing earlier this year to support this programme and the Company's wider strategy.
'It is particularly exciting that a study is underway to assess the feasibility of co-locating data centre infrastructure at site, which would be powered by West Newton’s natural gas, offering a uniquely positioned “behind-the-meter” development solution for digital infrastructure in the UK. The UK is experiencing a significant acceleration in demand for digital infrastructure, driven by AI and the growing digital economy for which securing and scalable, affordable and reliable power has become a key constraint. We believe West Newton has the potential to provide reliable power generation, creating an additional value pathway alongside the project’s existing traditional natural gas development plans.'
Source: Reabold Resources
