Reabold Resources PLC said the West Newton project on Humberside could be on stream in four years if all approvals are granted.
A competent person’s report (CPR) compiled by consultant RPS is scheduled to be published next week (starting 26 September 2022).
Rathlin, a Reabold subsidiary and the field's operator, added that production could start by 2026 provided regulatory approvals are expedited and supply chain delays can be managed.
Gas from West Newton has the potential to meet the daily gas demands of over 380,000 homes in the UK for many years to come, it estimates.
In the update, which followed meetings with the local community, Rathlin said lab analyses indicate that the formation of the reservoir is very sensitive to aqueous fluids
Previous drilling of the West Newton wells with water-based mud created near wellbore damage, while using dilute water-based acids during well testing also adversely affected the flow.
Going forward, an oil-based drilling fluid will minimise this damage to the oil and gas reservoir, said Raithlin, which has applied for permits for their use at both the West Newton A (WNA) and B (WNB) sites.
Analysis of the samples from drilling also indicated that the Kirkham Abbey reservoir contains gas (primarily methane 90% + ethane 5%) with associated light oil (condensate).
“The significance of this finding is that the requirement for trucking of oil during production may be greatly reduced," said the update (read here for the full report).
"A development with more gas production and less oil production will significantly reduce the volume of truck traffic associated with production and allow for the installation of a pipeline to deliver natural gas directly to the National Grid (LON:NG)."
Rathlin added that modelling by consultant RPS had also determined that drilling with an oil-based mud system and wells extending horizontally up to 1,500 metres (m) through the Kirkham Abbey reservoir would enhance its productive capability.
Reabold holds a 56% economic interest in West Newton and licence PEDL183 via its 59% shareholding in Rathlin, which, in turn, has a 66.67% interest in PEDL183.
In addition, Reabold has a 16.665% direct licence interest in PEDL183.
Union Jack Oil plc (LON:UJO) also has a 16.665% interest in PEDL183.