Reabold Resources, the investing company focused on developing strategic gas projects for European energy security, confirms the following update on the West Newton gas field, located within PEDL183, onshore UK in East Yorkshire.

England's environmental regulator, the Environment Agency ("EA"), has issued Rathlin Energy (UK), operator of the Licence, the variation to the permit for the West Newton 'A' Well Site allowing for the recompletion works to be carried out at the West Newton A-2 ("WNA-2") well subject to certain pre-operational conditions. This is a key regulatory milestone on the path toward development and eventual production of the West Newton gas field.

The Company believes that the planned recompletion of the WNA-2 well is a low risk and low cost activity that will further derisk the project and provide important information in optimising future production wells.

The Company is confident that West Newton will prove to be an important strategic asset to the UK as the country looks to secure domestic energy supply and affordable energy.

Reabold holds a c.69.9% economic interest in West Newton and PEDL 183 via its c.79.8% shareholding in Rathlin, which, in turn, has a 66.67% interest in PEDL 183. In addition, Reabold has a 16.665% direct licence interest in PEDL 183.

Sachin Oza, Co-CEO of Reabold commented:
"We are delighted to announce this important regulatory milestone, which represents a major step forward in unlocking the full value of West Newton that we believe is a significant and strategic natural gas resource. The EA's approval underscores the diligent and careful work undertaken for the planned recompletion works. We look forward to providing further updates as the project progresses toward development and production, which would see it contribute meaningfully to the UK's domestic energy security."

West Newton

West Newton is potentially one of the largest hydrocarbon fields discovered onshore UK, and is located near to infrastructure and a gas hungry industrial base. This strategic gas asset is ideally situated to underpin a significant data centre powering the future economy of the region.

Held through a direct 16.665% licence interest and a 79.8% shareholding in Rathlin, the operator of the Joint Venture for PEDL 183, Reabold has a 69.9% economic interest in the development opportunity that is the West Newton Field, East Yorkshire.

Data Center Development West Newton is ideally positioned to deliver a data centre solution. Being onshore, Reabold can colocate and integrate the power generation and data centre infrastructure with future wells from West Newton. In this way, West Newton can play an important role in powering the future growth driven by the digital economy in the North East of England.

A Competent Person’s Report (CPR) was completed by RPS Energy Canada Ltd on the PEDL 183 licence area. The CPR reports gross 2C unrisked technically recoverable resource of 197.6 bcf of sales gas and attributes 86% geological chance of success to West Newton.

The CPR indicates First Gas from West Newton no later than 2026, and based on an initial five well development drilling campaign. However, Reabold and its JV partners have subsequently developed a phased development programme for the licence. The North Sea Transition Authority has approved a revised work programme for PEDL 183 to:

• Re-enter and recomplete or sidetrack one of the currently suspended wells on or before 30 June 2026;
• Re-enter and recomplete or sidetrack one of the remaining suspended wells or drill and complete a new deviated or horizontal well on or before 30 June 2027; and submit a field development plan on or before 30 June 2027.

Rathlin, as the operator, has applied to carry out a reservoir stimulation on the existing West Newton A-2 well. Reabold believes this to be a key step in fully de-risking the subsurface characteristics of the project at limited cost.

A feasibility study was conducted by independent energy consultants CNG Services Ltd and concluded that as a precursor to the intended West Newton full field development, an initial single well development and gas export plan could accelerate production and cash flow whilst requiring limited capital expenditure.

Although the early production demonstrates highly attractive standalone economics, it is envisaged that it will be a precursor to the full field conceptual development plan as previously disclosed.  The pre-tax NPV(10) of the West Newton project was calculated to be US$179 million net to Reabold under the full field development plan.

The Company estimates that West Newton has the potential to meet gas demand for c.380,000 UK homes for many years. This will alleviate domestic gas shortfall and reduce the UK’s reliance on imported gas.

A Carbon Intensity Study completed by GaffneyCline on the West Newton field concluded that the project has an AA rating for Carbon Intensity for its potential upstream gas and condensate production, the lowest possible carbon intensity rating category on GaffneyCline’s scale.

The Carbon Intensity Study found that the West Newton field has a Carbon Intensity significantly lower than the UK average and onshore and offshore analogues. It is also significantly lower than the average imported liquified natural gas (LNG), based on the NSTA Natural Carbon Footprint Analysis published in July 2023.

KeyFacts Energy: Reabold Resources UK country profile