Reabold draws up UK West Newton plans
Reabold has drawn up a conceptual development plan for the onshore West Newton gas discovery in the UK that will involve eight wells brought online in phases, the London-listed company said on June 21.
Following an initial five-well drilling campaign at the field in the Humber region, first gas is envisaged as early as 2025, Reabold said. Three more wells will be spudded between 2028 and 2030, raising output to a plateau rate of 44mn ft3/day of sales gas. All told, the development is aimed at recovering 203bn ft3 of gas.
Economic modelling estimates the project's pre-tax net present value at $448mn, with a pre-tax internal rate of return of 87%. Reabold added there was scope to develop other fields in the Greater West Newton area that could be tied to the main field's infrastructure in the future.
The development plan is based on study work by Reabold, its licence partners and third-party experts including RPS and CoreLab. The work carried out by RPS and CoreLab has "demonstrated the potential of West Newton as an extremely valuable gas development opportunity," Reabold co-CEO Stephen Williams said.