The West Newton field is being operated in a joint partnership by both Reabold Resources PLC (LON: RBD) and Union Jack Oil PLC (LON: UJO).
Union Jack have been busy over the last few weeks, as the firm approaches the end of 2019. The firm has seen turbulence across the year, however this seems to be a good end to 2019 for the firm.
At the end of November, the firm expectedly saw its shares crash following an announcement of share placing plan.
The announcement made on November 27, told shareholders that the firm had raised £5 million through a share placing scheme.
The UK-focused oil exploration company had raised the new money via placing of 2.93 billion new shares at 0.15 pence each and subscription of 404.3 million shares at the same price.
Today, both firms have told the market that they are ready to commence operations at the West Newton field in the near future.
Reabold Resources PLC has a 39% stake in West Newton, via its 59% holding in operator and 67% shareholder Rathlin Energy UK Ltd. Union Jack Oil PLC holds a direct 17% stake in West Newton.
Both firms saw their operations suspended in August, to review the design of the well testing.
This review has now been completed and work is imminently pending subject to regulatory approval.
The design was reviewed following the discovery the Kirkham Abbey formation also contained liquid hydrocarbons, having previously been anticipated to be a “major” gas discovery.
Reabold co-Chief Executive Stephen Williams said: “Reabold is delighted with the progress that continues at the West Newton A-2 well to further our understanding of the discovery and welcomes the near-term resumption of the well test.
“Reabold’s recently increased interest in Rathlin provides us further exposure to what continues to develop into a very exciting, large-scale asset. Once the test is complete, we look forward to drilling the additional two wells to test the Kirkham Abbey formation and the potential of the Cadeby formation, which is considered a highly important and valued target.”
David Bramhill, executive chair of Union Jack, added: “We are pleased to report the progress that has been made to understand better the significance of the West Newton discoveries, to plan the resumption of the A-2 extended well test and design of the drilling programme for 2020 following extensive and painstaking technical work executed by both Rathlin and Union Jack’s technical teams.
“West Newton remains one of Union Jack’s flagship projects which will be evaluated in further detail during 2020.”
Shares in Union Jack trade at 0.16p dipping 4.55% on Wednesday. 18/12/19 18:36BST.
Shares in Reabold Resources PLC trade at 0.73p (-4.71%). 18/12/19 18:37BST.
