Reabold Resources Plc announced initial results of analysis of the West Newton Extended Well Test ("EWT") programme carried out in the second half of 2021 by RPS Group ("RPS") and the results of analysis carried out on fluids produced to surface. Following the completion of the West Newton EWT in Fourth Quarter 2021, the project operator, Rathlin Energy Limited ("Rathlin"), commissioned RPS, a highly-regarded independent consultant, to produce a review that assessed well productivity potential from the West Newton field, and investigated optimised drilling and well completion methodologies. The RPS review concluded that the Kirkham Abbey reservoir is likely to deliver substantially higher production rates from horizontal wells compared to vertical wells.

The report also concluded that, based on RPS modelling, most of the acid stimulation carried out during the EWT only interacted with a small section of the perforated intervals due to the permeability contrast across the Kirkham Abbey formation in both wells. This suggests that potential flow rates from wells in the Kirkham Abbey reservoir would benefit from an optimised acid stimulation programme that includes active diversion techniques. Whilst the well productivity and therefore project economics are significantly optimised through horizontal drilling, the modelling also indicates that optimised acidization should lead to both oil and gas flow from vertical wells.

Therefore, it may be possible to recomplete the existing wells to achieve sustained flow rates, which would further de-risk and help optimise subsequent horizontal drilling. Further evaluation is ongoing to support the economic feasibility of horizontal wells, including an assessment of longer term production rates. A number of additional workstreams and studies are currently underway, and further announcements are expected in due course.