Business
Farm-out of Curlew-A Appraisal Well
Farm-out of Curlew-A Appraisal Well.
About this update from Reabold Resources Plc
[{"type":"text","content":"\n \nRNS Number : 2937F Reabold Resources PLC 26 October 2018 \n\n26 October 2018\n \nReabold Resources Plc\n\"Reabold\" or \"the Company\"\n \nCorallian - Farm-out of Curlew-A Appraisal Well\n \nReabold, the oil and gas investing company, is pleased to announce that Corallian Energy Limited (\"Corallian\"), in which Reabold has a 32.9% interest, has signed a farm-out agreement with Talon Petroleum (UK) Limited (\"Talon\"), a wholly-owned subsidiary of ASX-listed Talon Petroleum Limited, for a 10% interest in Licence P2396, which contains the Curlew-A discovery, offshore UK, North Sea.\n \nPursuant to the terms of the farm-out, Talon will pay 15 per cent. of the drilling cost for an appraisal well at Curlew-A up to a cap of £12.0m and thereafter pro rata to its participating interest. The current estimated well cost, using a Jack-Up rig, is £9.7m.\n \nThe appraisal well is currently anticipated to be drilled by Corallian in H2 2019 to test the original 1977 Shell Curlew-A discovery, which encountered 10.5m of net oil sands in the Odin and Cromarty sandstones within a salt-cored anticline and recovered multiple, 36° API light oil samples. \n \nIt is anticipated that the Curlew-A appraisal well will be drilled to a depth of approximately 2,700 metres sub-sea in a water depth of approximately 90 metres.\n \nA Competent Person's Report on Curlew-A, completed by Software Information Solutions, Schlumberger Oilfield UK in October 2018 assigned the following gross volumes to the discovery: \n \n\n\n\n \n\n\nUnrisked Oil in Place\n\n\nUnrisked Contingent Resource Volumes\n\n\n\n\n \n\n\nMmbo\n\n\nOil (mmbo)\n\n\nSolution Gas (bscf)\n\n\nOil Equivalent (mmboe)\n\n\n\n\nLow Estimate - 1C\n\n\n56.5\n\n\n15.5\n\n\n23.9\n\n\n19.5\n\n\n\n\nBest Estimate - 2C\n\n\n120.0\n\n\n36.2\n\n\n50.9\n\n\n44.7\n\n\n\n\nHigh Estimate - 3C\n\n\n186.8\n\n\n68.3\n\n\n79.1\n\n\n81.5\n\n\n\n \nThe intention for the appraisal well is to initially de-risk 44.7 mmboe of Unrisked 2C Contingent Resources before targeting a deeper secondary objective in the deeper Forties Sandstone. The Forties Sandstone was not previously encountered in the original discovery well but is expected to be developed in the southwestern flank of the structure where the appraisal well will be drilled. \n&...