OIL and gas firm Reabold Resources has hailed the results of drilling which highlighted the potential of a find it reckons could be the biggest made onshore in the UK for decades.
Reabold said an appraisal well on the West Newton gas find near Hull indicated it could contain enough hydrocarbons to provide material volumes of low cost supplies to help meet the UK’s energy needs.
The company said the results suggested West Newton could contain the equivalent of more than 30 million barrels oil.
As the field lies close to existing infrastructure Reabold reckons it could be developed fairly quickly.
“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,” said Reabold’s chief executive Sachin Oza.
He noted the well had also encountered oil increasing the company’s excitement about a project it reckons could be transformational.
Shares in Reabold rose around 25 per cent yesterday indicating investors see potential in West Newton.
Reabold said:“West Newton is potentially the largest UK onshore gas field and potentially the largest hydrocarbon discovery onshore UK since 1973, subject to further testing.” Preliminary results suggested the field contained at least the pre-drill estimate of 189 Billion Cubic Feet of Gas, the equivalent of 31.3m barrels oil.
London-based Reabold has stakes in four projects including two in the UK. It is working with Corallian Energy on a plan to see if a find made off Dorset by British Gas in 1983 may be commercially viable.
Reabold Resources shares closed up 0.2p at 1.02p.
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