Reabold Resources (AIM:RBD), the investing company focused on strategic gas projects for European energy security, confirmed that Rathlin Energy has issued notice that preparatory work will begin shortly ahead of the recompletion, stimulation and testing programme at the West Newton A-2 well.
Rathlin operates PEDL183 in East Yorkshire, home to the West Newton natural gas field, which Reabold has described as one of the largest onshore hydrocarbon discoveries in the UK.
Authorities for expenditure have been issued covering access road works and long-lead items including specialty chemicals, with final engineering and contract awards underway before the well is recompleted and tested.
The total gross programme cost is estimated at approximately £2.5 million, excluding contingency, and Reabold said it is funded to cover its share following a £4.16 million equity placing earlier this year at the prevailing market price.
Reabold holds a 69.9% economic interest in the licence through its 79.8% stake in Rathlin and a direct 16.665% licence interest.
Separately, a feasibility study is underway to assess co-locating power generation and data centre assets at the site, using gas produced from the field to supply on-site infrastructure.
Stephen Williams, Reabold's co-chief executive, said the onshore location offers a "uniquely positioned 'behind-the-meter' development solution for digital infrastructure in the UK", pointing to rising demand for reliable power driven by AI and the digital economy.
Rathlin also plans to establish a community benefit fund tied to West Newton.
Further updates on both the well programme and the data centre study are expected as work progresses.
News Intelligence what this means for the company
Reabold has confirmed that operator Rathlin Energy will begin preparatory work on a £2.5 million recompletion and testing programme at West Newton A-2, funded from Reabold's recent £4.16 million equity raise. In parallel, the company is studying whether to co-locate data centre power infrastructure at the site, leveraging gas production to supply on-site digital assets—a speculative venture whose feasibility remains under assessment.
The West Newton programme represents concrete near-term capital deployment on an asset Reabold describes as one of the UK's largest onshore hydrocarbon discoveries, but the data centre co-location remains exploratory and carries execution risk. The equity raise has funded the well work, so near-term cash burn is defined; the data centre angle is a potential upside optionality rather than a committed revenue driver.
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