Business
West Newton Conceptual Development Plan
West Newton Conceptual Development Plan.
About this update from Reabold Resources Plc
[{"type":"text","content":"\n \n \n 21 June 2022\n \n \n \n \n \n Reabold Resources plc\n \n \n \n \n \n \n \n (\"\n Reabold\n \" or the \"\n Company\n \")\n \n \n \n \n \n \n \n \n \n \n \n \n \n West Newton Conceptual Development Plan\n \n \n \n \n \n \n \n \n \n \n \n \n \n Reabold, the AIM quoted investing company which focuses on investments in upstream oil and gas\n projects, is pleased to provide an update on the West Newton Project, in which the Company owns a 56% economic interest.\n \n \n \n \n \n \n Highlights:\n \n \n \n ·\n The Company is progressing the conceptual development plan for West Newton as, predominantly, a gas development project following the completion of the significant work carried out by PEDL 183 Joint Venture partners and independent third-party experts\n \n \n \n \n \n ·\n Post Extended Well Test (\"EWT\") analysis:\n \n \n o \n Indicates the potential for good well productivity from new wells and,\n \n \n o \n Underpins the strong economic returns of the project\n \n \n \n \n \n ·\n Conceptual plan (subject to funding) envisages a phased eight well gas development, which will target recoverable hydrocarbon volumes of 35 Mboe with a sales gas component of 203 Bcf\n \n \n o \n Following an initial five well development drilling campaign, First Gas is anticipated as early as 2025\n \n \n o \n A further three wells will be drilled in 2028-2030, modelling plateau production rates of 44 Mcfd of sales gas\n \n \n o \n Economic modelling calculated a Gross pre-tax NPV(10) of $448 million and a pre-tax IRR of 87%, based on recoverable sales gas and small volumes of associated liquids, for the development\n \n \n o \n Potential for further fields within the Greater West Newton area to be tied into West Newton infrastructure; not currently included in the modelling\n \n \n \n \n \n ·\n The Joint Venture intends to drill the low-cost wells in a manner which phases the development cost, significantly de-risking the financial profile of the project\n \n \n \n \n \n ·\n Immediate next steps include:\n \n \n o \n Completion of a Competent Persons Report (\"CPR\") by RPS Group in Q3 2022\n \n \n o \n First development well, planned for H1 2023 to materially de-risk the project at modest cost\n \n \n \n \n \n A new presentation wh...