Oil and gas project investment firm Reabold Resources PLC (LON: RBD) announced today that their West Newton A-2 appraisal well represents a far more significant discovery then they had previously anticipated.
Reabold holds a 24% interest in the licence through its 36% holding in Rathlin Energy, who operate the well. After initially anticipating the site was only a gas prospect, today’s announcement told shareholders that the West Newton A-2 prospect represents a ‘significant oil and gas discovery’.
Reabold Resources said initial analysis suggests a 65 metre hydrocarbon column, with 45 metres of oil underlying a 20 metre column of gas. The oil zone appears to be naturally fractured and according to logs and core, has encouraging porosity.
The Company said the Extended Well Test was paused in order to optimise the evaluation of the oil column.
Reabold Resources comments
Stephen Williams, Co-CEO of the Group, stated,
“The realisation that we appear to have a 45 metre oil column is a significant and exciting development in the evaluation of this cornerstone asset. We particularly look forward to further analysis and testing results, as well as a proposed updated CPR, as, alongside our partners, we establish the optimum forward programme to maximise value out of this field for Reabold shareholders.”
“In addition, the next well at West Newton will be planned to target the deeper Cadeby formation, which has the potential to add significant further resource upside. There are also other follow on exploration targets within this extensive licence area.”
Following today’s news, the Group’s shares rallied 12.00% or 0.15p to a close of 1.40p a share 29/08/19 16:01 BST. The Group’s market cap is £55.88 million, neither their p/e ratio, nor their dividend yield are available.
Elsewhere in the oil and gas sector, there have been updates from; Eco Atlantic Oil and Gas Ltd (AIM: EOG), Valeura Energy Inc.(LON: VLU), President Energy PLC (LON: PPC), Mosman Oil and Gas Limited (AIM: MSMN) and Nostrum Oil and Gas PLC (LON: NOG).