Well Operations Start at UK Onshore Site (Update)
(Adds analyst's comment in para 3)
Drilling operations for the B-1 well at West Newton onshore east Yorkshire have started, partner Reabold Resources said August 18. The well will appraise the extent of the West Newton A-2 discovery as well as test the deeper Cadeby formation. Reabold has an economic interest in 56% of West Newton while the operator is Rathlin Energy. The drilling operations are expected to continue for six to ten weeks.
The B-1 well follows the A-2 well on the West Newton field. Rathlin said that there are also between 211.5bn ft³ and 265.9bn ft³ of gas in place, and between 146mn and 283mn barrels of oil.
In his daily blog, analyst Malcolm Graham-Wood said: "These are exciting times for the West Newton partners as the significance of the upside is yet to be manifested in the share price of either quoted vehicle. Any success here would vindicate trust and patience shown by both Union Jack [17%] and Reabold as well as provide a huge possible return on investments."
Rathlin says that the "geology that contains the large gas fields off shore to the east in the Southern North Sea extends onshore under East Yorkshire. It is thought that similar gas fields, although smaller in size, may lie beneath east Yorkshire."
Conductor rig starts work
A conductor drilling rig has been successfully mobilised to the B-1 site and is beginning operations, with a main drilling rig following shortly to appraise the Kirkham Abbey formation and test the Cadeby formation. The information gathered during the drilling of West Newton B-1 will inform a subsequent programme of well testing to establish productive capability and any future drilling operations.
The B-1 well has the dual objective of appraising the Kirkham Abbey formation and evaluating the Cadeby formation which, if successful in achieving one or more of the company's objectives, "will substantially upgrade the value of West Newton and Reabold," the company said.
UK Deltic Energy, which Reabold attempted to buy last month, is planning to produce gas from two offshore prospects in that part of the North Sea: Selene and Pensacola.