Reabold Resources (LON: RBD) has hailed the “excellent economics” of a new plan and a regulatory green light for its onshore gas project at West Newton near Hull.
The North Sea firm revealed some of top lines in a report on its West Newton Project conducted by independent energy consultants CNG Services.
It said the West Newton Gas Export Feasibility Study found a low cost well and export plan costing around £12million could “accelerate” cash flow.
Plan for early production
Bringing on production via an initial single well development connected to the UK gas network, the National Transmission System, via a 2 mile pipeline, Reabold could then develop the full field conceptual development plan fuelled by a steady income stream.
The firm added that while the plan for early gas production “demonstrates highly attractive standalone economics”, the full field conceptual development plan will still likely cost its backers around £140m, net to Reabold.
Reabold owns a 56% stake in licence PEDL 183 which contains the West Newton Project and the wider West Newton project area.
In addition, the North Sea Transition Authority (NSTA) has approved a revised work programme for PEDL 183 onshore UK.
The new minimum required work programme approval gives the firm a time scale for re-entering and recompleting sidetracks into currently suspended wells by end of June 2026, and a new field devekopment plan before the end of June 2027.
© Supplied by Reabold ResourcesCo-CEO or Reabold said: “The CNG Feasibility Study highlights the opportunity to unlock significant near-term value from the West Newton project through the early production plan.
“The study confirms that the early production plan is both technically robust and economically attractive with a low capex requirement.
“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.
“With the industry currently suffering from a lack of available development capital, the ability to achieve early production with limited capex is strategically extremely valuable.
“With the necessary approval from the NSTA for the revised work programme for PEDL 183 secured, Reabold can continue to progress this important UK gas project in the most optimal manner.”
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