Rathlin Energy (UK) Ltd is preparing to start the planned £2.5 million recompletion, stimulation and testing of the West Newton A-2 (WNA-2) well at the natural gas joint venture in East Yorkshire.
Investor Reabold Resources plc said that the operator of PEDL183 would construct an access road at the West Newton ‘A’ well site, procure long-lead items, including speciality chemicals for the stimulation process, aiming to derisk the project.
Final engineering and award of contracts are also underway, while a community benefit fund will also be established.
A feasibility study has additionally started to evaluate the potential for power generation and data centre assets, using gas produced from the field.
The West Newton partners comprise Rathlin with a 66.7% interest, Reabold has a 69.9% economic interest through its 79.8% shareholding in Rathlin and a 16.665% direct licence interest, and Union Jack Oil plc owns a 16.665% working interest.
Reabold co-chief executive officer Stephen Williams said of the preparations: “We remain highly confident in the strategic value of West Newton, given the scale of the resource, its onshore location and the growing importance of enhancing the UK’s domestic energy security.
“It is particularly exciting that a study is underway to assess the feasibility of co-locating data centre infrastructure at site, which would be powered by West Newton’s natural gas, offering a uniquely positioned ‘behind-the-meter’ development solution for digital infrastructure in the UK.
“The UK is experiencing a significant acceleration in demand for digital infrastructure, driven by AI and the growing digital economy for which securing and scalable, affordable and reliable power has become a key constraint.”
(Image: gas flame by magnascan from Pixabay)