Union Jack Oil (AIM:UJO) and Reabold Resources (AIM:RBD) say exploration efforts at the West Newton B site in PEDL 183, onshore UK, continues to progress amid the COVID-19 situation.
Both parties noted a statement this morning by the site’s operator, Rathlin Energy, which highlighted that it had kick-started preparatory work ahead of drilling at West Newton B.
Union Jack holds a 16.665% interest in the licence whilst Reabold holds around 39% via its 59% equity interest in Rathlin which is fully funded for activity across both A and B sites.
The preparatory work will involve completing the access track and site and activities that are pre-operational conditions of the Environment Agency and East Riding of Yorkshire Council (ERYC).
Shares in Union Jack Oil opened flat in early morning trading.
The aim is to appraise potentially significant resources that were previously discovered at the West Newton A-2 well in 2019, as well as testing further potential in the identified exploration targets.
The activities have been planned ‘over several months’ after Rathlin notified the ERYC in March that works at the B site would be commencing during the second quarter of 2020.
"We are very pleased that Rathlin are able to safely progress activities at the West Newton B site, especially in these challenging and unprecedented times,” said David Bramhill, Executive Chairman of Union Jack.
Shares in Reabold opened flat in early morning trading.
Both Reabold and Union Jack anticipate West Newton to be “a key driver” for shareholder value during 2020 and in future.
Union Jack highlighted in March that it had more than US$6.2m of cash and has no debt, leaving it funded for all testing and drilling commitments in 2020.
Meanwhile, Reabold noted it had in excess of £6m in cash to fund the 2020 work programme which includes the drilling at West Newton B.
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