The West Newton joint venture said that new development plans allow early production and revenue with low capital expenditure, based on the project’s feasibility study.
DEVELOPMENT
The West Newton A1, A2 and WNB-1z discoveries lie within licence PEDL183 in East Yorkshire.
CNG Services Ltd’s study revealed that, before full field development, an initial single horizontal well and gas export plan could “accelerate production” and cash flow with “limited” capex of £12 million.
The JV previously proposed to drill well WN-A3, twinned with the untested WN A-1 discovery well, in late 2024.
Project partner Reabold Resources plc said that a modular plant would process the gas.
Sales gas would be tied in from the West Newton A site to the National Transmission System at an existing above-ground installation via a 3.5km pipeline.
A single well development would also generate early cash flow to use for drilling future development wells.
First gas soon after drilling and completing a producer well is targeted within 18 months from completion of drilling the next well at West Newton
For PEDL183, the JV will re-enter and recomplete or sidetrack one of the currently suspended wells on or before 30 June 2026.
The programme also includes re-entering and recompleting or sidetracking one of the remaining suspended wells, or drilling and completing a new deviated or horizontal well on or before 30 June 2027.
The JV needs to submit a field development plan on or before 30 June 2027.
Operations are fully funded and activities are expected to begin during 2024.
Co-chief executive Sachin Oza added the FS confirmed that the early production plan was both technically robust and economically attractive.
“This phased development plan allows gas production to be brought to market within months of drilling, generating significant early cash flow whilst we progress the full field development plan.”
Reabold added that the North Sea Transition Authority had approved the revised plan for the licence.
Partners include operator Rathlin Energy (UK) Ltd which owns 66.67%, Reabold holding a 56% economic interest via its 59% share in Rathlin and a 16.665% direct licence interest, and Union Jack Oil plc with a 16.665% economic interest.