I’ve held off writing this for as long as I can too gave Rathlin (Operator) as long as I can on the current West Newton drill, however it’s time now to update on the drill.
It’s not going according to plan at The West Newton B-1z drill where testing operations are targeting hydrocarbons in the conventional Kirkham Abbey Formation reservoir.
No oil has been encountered and as of this morning, no oil or gas has flowed. Rumours & sources are that drill has been beset with ‘operational difficulties’. Hence the ‘radio silence.’ Of course those involved have denied these ‘difficulties’ but I can tell you now that my sources are many and problems there are. However, ‘OP’ difficulties aren’t confirmation of no oil, gas or condensate. But they are an indication that the EWT is failing to produce what we all expect on the timeline espoused by Union Jack Oil (LON: UJO) & Reabold Resources (LON: RBD)
It’s been 5 weeks on a six week extended well test (EWT) that was announced on Monday 24 May 2021, when equipment required to complete and test the West Newton B-1Z well commenced mobilization to site. Reading the ‘runes’ on the delay in updating on operations is yet another ‘indicator’ there’s been difficulty. Regardless of what’s being said behind the scenes to investors by those involved.
The problems re the EWT are undergoing standard operating procedures (SOPs) so all ‘could’ come back into kilter this week or next. As it stands the clean up, after all the procedures, continues. That’s exactly where we are at.
There are no guarantees in O&G, there’s always hiccups, however what’s lacking here is clarity, information being deliberately withheld in the hope that we get the result we all deserve, ‘Hail Mary’ comes to mind. In the real world you tell it as it is. Especially to your base investors/traders. Obfuscation shouldn’t be used by listed companies.
So, I’m now calling on both listed companies and their Nomads to RNS exactly what the situation is and what operational activities have thus far been used. It was perfed weeks ago, various nitrogen lifts, acid washes and now a pump on, all of that is in the public domain via various watchers who regularly visit West Newton. I also note that the RBD share price, and to a lessor extent, UJO, has began to fall. That’s an indication that those in the know, usually indirectly, are selling down.
Both companies should immediately update the market to level the playing field.