Reabold Resources plc said that the Environment Agency had approved the use of oil-based drilling fluids during drilling and testing the West Newton B-2 well.
FUNDING
The variation of the permit for the West Newton B well site allows joint venture partner and operator Rathlin Energy (UK) Ltd to use oil-based fluids within the Permian formations.
Planning has begun for the horizontal well from the West Newton B site with operations targeted to start during H1 2024.
The JV has selected the well path and engineered design, purchased the wellbore casing and Rathlin is currently assessing the availability of a drilling rig and key sub-contractors.
Reabold added it had sufficient funds for its direct share of planned drilling and it would also support Rathlin in exploring funding options to drill the well.
The company might also offer further funding once it receives second tranche payment from Shell relating to the sale of the Victory asset.
“Our studies have clearly demonstrated that the use of oil-based drilling mud will be a key factor in enhancing flow rates from wells in this field, and therefore this is an important step for the drilling of the B-2 horizontal well next year,” said co-chief executive officer Sachin Oza.
“West Newton is potentially one of the largest hydrocarbon fields discovered onshore UK and we remain focused on developing and unlocking the significant resource potential of this asset.”
The company holds a 56% economic interest via its 59% share in Rathlin, which has a 66.67% in PEDL183.
Reabold also has a 16.665% direct licence interest and Union Jack Oil plc owns a 16.665% economic interest.