UK’s ‘largest onshore gas field’ found in East Yorkshire

The UK’s largest onshore gas field may have been discovered at a drill site in West Newton, East Yorkshire.

Reabold Resources Plc said in a stock exchange statement West Newton is “potentially the largest UK onshore gas field and potentially the largest hydrocarbon discovery onshore UK since 1973, subject to further testing …”

Reabold said West Newton is near Hull “where there is an abundance of production infrastructure” and declared “existing pre-drill NPV (net present value) for West Newton of $247 million.”

Reabold said it holds a 24% economic interest in the licence via its 36% holding in Rathlin Energy (UK) Ltd, operator of the well.

Shares in Reabold rose 33%.

Shares of Union Jack Oil plc, another firm involved, rose 38%.

Union Jack said it holds a 16.665% interest in the licence containing the West Newton A-1 discovery well and West Newton A-2 appraisal well.

Reabold Co-CEO Sachin Oza said: “We are delighted by today’s results confirming that West Newton could potentially be the UK’s largest onshore gas field.

“The results of the well have exceeded our expectations and have also shown a significant liquid hydrocarbon volume which has increased our excitement and the future value of the field materially.

“From its onshore location near Hull and with nearby infrastructure available, we anticipate that West Newton can provide material volumes of hydrocarbons for the UK’s energy needs at low cost and in the near term. 

“Success in a project of this scale would undoubtedly be transformational for Reabold and its investors.

“We look forward to the well test in the coming weeks and potentially generating early cash flow from the testing programme.”

Union Jack Oil plc executive chairman David Bramhill said: “The initial results of the West Newton A-2 appraisal well exceed our expectations.

“The most important aspect of this drilling exercise is that the operation was undertaken in a safe and competent manner by the operator.

“We rank the West Newton project very highly and look forward to the results of testing during Q3 2019.

“These encouraging results suggest to us that the West Newton project has the potential to achieve our goal of transforming Union Jack from a junior exploration and production company into a self- sustaining mid-tier hydrocarbon producer”.

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.