Business
Investment in Rathlin Energy (UK) Ltd
Investment in Rathlin Energy (UK) Ltd.
About this update from Reabold Resources Plc
[{"type":"text","content":"\n \nRNS Number : 2687G Reabold Resources PLC 05 November 2018 \n\n5 November 2018\n \nReabold Resources Plc\n\"Reabold\" or \"the Company\"\n \nInvestment in Rathlin Energy (UK) Ltd\n \nReabold is delighted to announce that it has signed a subscription agreement with Rathlin Energy (UK) Limited (\"Rathlin\"), a wholly-owned subsidiary of Calgary-based Connaught Oil & Gas Limited (\"Connaught\"), to invest a total of £3 million (\"the investment\") for an equity interest of 37.08 per cent. in Rathlin, which is the operator of the PEDL183 license onshore UK. The investment is conditional on, inter alia, the completion of a farm out, by Rathlin, of PEDL183 to Union Jack Oil plc (\"Union Jack\") and Humber Oil & Gas Ltd (\"Humber\") (the \"Farm Out\") which will result in Rathlin retaining a 66.67% equity interest in PEDL183. The license contains the significant West Newton A-1 gas discovery, and the investment is intended, together with the Farm Out, to fund the drilling of an appraisal well on this discovery in Q1 2019. \n \nProject Highlights:\n· Q1 2019 drilling programme, designed to test two high-impact targets\n· Gross Contingent Resource of 189Bcfe (31.5Mboe) assigned to the West Newton A-1 gas discovery\n· Gas appraisal target with an estimated 72% chance of success and gross NPV (10) of $247M* \n· Additional future upside from the testing of the reef flank Cadeby formation oil prospect, with gross Prospective Resource of 79.1Mboe\n· Cadeby oil exploration target which has an estimated 24% chance of success and gross NPV (10) of $850m*\n· Planning permission for the appraisal well is in place and the target is drill ready\n· Connaught Management estimates supported by a 2017 Competent Person's Report (CPR)\n \nIn line with Reabold's strategy, the Company is providing part of the funding for a Q1 2019 appraisal campaign on the 189 Bcfe Contingent Resource West Newton discovery. The well will have two objectives. The first objective is to appraise the Kirkham Abbey Formation gas discovery which has an estimated 72% chance of success and an NPV of $247m*. The second objective of the well is to test a deepe...