The West Newton joint venture said it would save costs and generate early cash flow under revised plans for PEDL183 in East Yorkshire.
GAS COLUMN
The licence contains the West Newton A1, A2 and WNB-1z discoveries.
The new plan is to drill the proposed well WN-A3, twinned with the untested WN A-1 discovery well, during late 2024.
Last September the JV said it planned to drill the horizontal WNB-2 well during the first half of 2024 and had earlier in the year committed to a drill path.
Partners include operator Rathlin Energy (UK) Ltd which owns 66.67%, Reabold Resources plc holding a 56% economic interest via its 59% share in Rathlin and a 16.665% direct licence interest, and Union Jack Oil plc (UJO) with a 16.665% economic interest.
Reabold and UJO today said that the new drilling programme, utilising the West Newton A (WNA) drilling site, followed several months’ technical evaluation.
After drilling in 2013, WN-A1 was interpreted as having a 27 metre gas column within the Kirkham Abbey formation as indicated on the logs of the WN-A1 well.
The well was shut-in and suspended when the well started to flow fluid and the blind rams were closed for safety reasons to establish control of the well, while numerous clean-up attempts failed.
Due to severe damage to the Kirkham Abbey Formation the JV was unable to obtain a valid hydrocarbon production test to surface of the 27m pay-zone shown on the CPI log.
The proposed WN-A3 will be directional, offering “significant” cost savings compared with a horizontal well.
The JV will also evaluate an additional material secondary target in the deeper Permian Rotliegend Sandstone during drilling WN-A3 or by the re-entry of WN-A1.
A feasibility study has started for a single gas well development plan at WN-A3 well to follow successful testing and well completion.
UJO and Reabold said that planning permission was in place to drill and produce from the WNA site while the JV is accelerating other approvals.
“[The] revised drilling plan is cost-effective with an above average chance of success, offering a rapid early-stage development scenario with access to significant early cash flows if successful.”
Commercial gas production could be brought to market “within months” of a successful production test.
FUNDING
Reabold co-chief executive Stephen Williams added: “We are excited by the new phased capex plan at West Newton which could see production and cash flow much sooner than previously expected, and with considerably reduced initial capital investment.
“We anticipate a funding solution for the drilling of WN-A3 being finalised in the near future, and this first development well being drilled this year.”
Union Jack executive chairman David Bramhill said that the JV had begun work to progress drilling.
“The objective is to develop what we know to be a material onshore gas resource located in an area with excellent access to local and national infrastructure and an attractive domestic gas off-take market.”