23 September 2022

Reabold Resources plc

("Reabold" or the "Company")

West Newton Community Update on Planned Activity at West Newton Site

Reabold, the AIM quoted investing company, which focuses on investments in upstream oil and gas projects, notes that Rathlin Energy (UK) Limited ("Rathlin"), the Operator of PEDL183 and the West Newton Field, has today published an update to residents regarding ongoing plans for the West Newton project, following a meeting with the West Newton Community Liaison Group.

The results of a CPR compiled by industry consultants RPS is planned to be published the week commencing 26 September 2022.

Reabold holds a ca. 56% economic interest in West Newton and PEDL183 via its ca. 59% shareholding in Rathlin, which, in turn, has a 66.67% interest in PEDL183. In addition, Reabold has a 16.665% direct licence interest in PEDL183.

The full text of the Rathlin update is as follows:

West Newton Community Liaison Update - September 23, 2022

The Rathlin team met with members of the West Newton Community Liaison Group ("CLG") on the West Newton B ("WNB") site to allow the CLG members to see the site and talk through Rathlin's work.

Engineering Update:

Over the last number of months, data collected during the course of drilling the West Newton wells, which includes core samples, oil and gas samples, wireline log and well test data, have been analysed by third party labs (CoreLab, Applied Petroleum Technology ("APT")) and an engineering firm (RPS). The results from these analyses, in conjunction with internal evaluations, have been very helpful in informing Rathlin's upcoming programme of work.

Lab analyses have determined that the formation is very sensitive to aqueous fluids and that previous drilling of the West Newton wells with water-based mud has created near wellbore damage in the Kirkham Abbey reservoir, through the creation of very fine rock fragments while drilling, that potentially plug up the natural porosity and permeability of the reservoir and have a detrimental effect on its ability to flow. Further analyses have determined that the use of dilute water-based acids during well testing will also have adversely affected the flow characteristics of the Kirkham Abbey reservoir.

These same tests demonstrate that by drilling the Kirkham Abbey reservoir with an oil-based drilling fluid, damage to the oil and gas reservoir can be minimised.

To that end, Rathlin has made applications to the Environment Agency ("EA") for use of oil-based drilling fluids within the oil and gas bearing Permian section, for both the West Newton A ("WNA") and B sites. Oil based drilling fluids are included in the Standard Rules permit, which has been applied for at WNB, whereas the current variation to the WNA permit has been adapted to include oil-based muds in the same manner as in the standard rules permit.  Determination of these permits is pending.

Analyses by APT labs of numerous oil and gas samples recovered from the West Newton wells during testing to date along with evaluation of mud gases measured during drilling utilizing a proprietary software package, indicates that the Kirkham Abbey reservoir contains gas (primarily methane 90% + ethane 5%) with associated light oil (condensate).

The significance of this finding is that the requirement for trucking of oil during production may be greatly reduced. 

Following on from the lab analyses, Rathlin engaged engineering consultants (RPS) to undertake a detailed reservoir and completion programme study based on the CoreLab and APT lab results. RPS determined that by drilling with an oil-based mud system and extending the length of reservoir section penetrated by a well, the productive capability of each well will be enhanced.

RPS has modelled wells extending up to 1500 meters horizontally through the Kirkham Abbey reservoir. The modelled horizontal wells will also have a much greater likelihood of encountering significant sections of the reservoir with open natural fractures which will also enhance the productive capability of the Kirkham Abbey reservoir.

Work programme:

Rathlin and our partners' technical teams are currently working to determine the optimum orientation for a horizontal well, which may be drilled from either the A or B site.

Given the challenges with the global supply chain, long lead items such as steel casing for a horizontal well has already been ordered. The availability of drilling rigs capable of drilling a 1,500-meter horizontal well is also being determined.

Field Development:

The significance of the lab and engineering findings has important benefits in terms of the West Newton field development.

From a local resident perspective, a development with more gas production and less oil production will significantly reduce the volume of truck traffic associated with production and allow for the installation of a pipeline to deliver natural gas directly to the National Grid.

Domestically produced natural gas is, and will remain, a much-needed part of the energy mix as the UK seeks to reduce its reliance on foreign gas, whether delivered by pipeline or as LNG in oceangoing tankers.

The North Sea Transition Authority indicates that domestic UK gas production has less than ½ of the Emission Intensity of imported LNG. This is particularly important, as the UK seeks to reach its Net Zero 2050 targets.

Commercial production from West Newton could start as early as 2026 provided regulatory approvals are expedited and supply chain delays can be managed.

The anticipated recoverable gas resource at West Newton will have the potential to meet the daily gas demands of over 380,000 homes in the UK for many years to come. Based on OFGEM data indicating that an average 3-bedroom UK home consumes 7.9 Kwh/day of electricity and 32.9 Kwh/day of natural gas.

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Notes to Editors

Reabold Resources plc is an investing company investing in the exploration and production ("E&P") sector and has a diversified portfolio of assets in upstream oil & gas projects. Reabold aims to create value from each project by investing in undervalued, low-risk, near-term projects and by identifying a clear exit plan prior to investment. The Company's investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world.

Reabold's long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.

Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company's strategy.