Rathlin Energy (UK), operator of license PEDL183 in East Yorkshire, has given notice that preparatory work is starting on the recompletion, stimulation and testing program at the West Newton A-2 well, according to Reabold Resources, the company that invests in the project. The total program is expected to cost about £2.5 million, excluding contingency.
Access road and long-lead items
Rathlin has issued authorities for expenditure covering access road works at the West Newton 'A' well site and the purchase of long-lead items needed for the program, including specialty chemicals used in the stimulation process. Final engineering work and contract awards are underway. Once that preparatory work is finished, the operator plans to install a new completion string in WNA-2 and run a testing program. Reabold funded its share of the work through a £4.16 million equity placing earlier this year, sold at the prevailing market price.
Data center feasibility study
Alongside the well program, Reabold and Rathlin are studying whether to co-locate power generation and data center infrastructure at the West Newton site, using gas produced from the field to run on-site equipment. A community benefit fund tied to West Newton will also be set up.
Ownership stakes
Reabold holds about a 69.9% economic interest in West Newton, made up of a roughly 79.8% stake in Rathlin, which itself holds a 66.67% interest in license PEDL183, plus a direct 16.665% interest in the license. West Newton ranks among the largest onshore hydrocarbon discoveries in the UK.
Stephen Williams, Reabold's co-chief executive, said: "We remain highly confident in the strategic value of West Newton."
