Reabold Resources has blamed “political instability in the UK” for delays at its West Newton gas development.
In a statement accompanying the group’s full-year financial results for 2023, Reabold Resources chairman Jeremy Edelman said that site operator Rathlin had struggled to secure funding for its share of PEDL183 onshore licence at West Newton in the UK.
“At West Newton, we were pleased to receive approval permits from the Environment Agency, a key step forward in enabling further licence activity,” Edelman said.
“We were however disappointed with the delay in drilling of the first development well, which had been targeted for the second half of 2023.
“Rathlin, the site operator, was unable to resolve funding for its own share in 2023, which we believe is a consequence of the fiscal and political instability in the UK.”
He added that Reabold has more than sufficient funding for its own share of the planned drilling programme, holding £8.2 million of cash and a strong balance sheet as of 30 April 2024.
“And having confirmed a materially lower phased capital expenditure plan for a single well development and early cash flow from production, ahead of the full field development longer-term, we now look forward to an enhanced level of interest and the resolution of Rathlin’s funding situation in 2024 through a potential farm-out arrangement or other sources of capital,” he added.
“As a board, we remain confident in the prospects for West Newton and are fully focused on realising the asset’s significant value potential for shareholders.”
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