Reabold Resources : Carbon Intensity of West Newton Report

Carbon Intensity of the West Newton Field

Prepared for

Reabold Resources PLC and Union Jack Oil PLC

21 May 2024

	Document Approval and Distribution
Copies:	Electronic (1 PDF)
Project No:	EL-24-609010
Prepared for:	Reabold Resources PLC and Union Jack Oil PLC
	Approved by Gaffney, Cline & Associates Limited

Project Manager:			21 May 2024
	Basil Al-Shamma, Principal Advisor

Reviewed by:			21 May 2024
	Drew Powell, Principal Advisor

Confidentiality and Disclaimer Statement

This document is confidential and has been prepared for the exclusive use of the Client or parties named herein. It may not be distributed or made available, in whole or in part, to any other company or person without the prior knowledge and written consent of Gaffney, Cline & Associates Limited (GaffneyCline). No person or company other than those for whom it is intended may directly or indirectly rely upon its contents. GaffneyCline is acting in an advisory capacity only and, to the fullest extent permitted by law, disclaims all liability for actions or losses derived from any actual or purported reliance on this document (or any other statements or opinions of GaffneyCline) by the Client or by any other person or entity.

Registered in England, number 1122740

Reabold Resources PLC and Union Jack Oil PLC

21 May 2024

		Table of Contents
Introduction	1
Basis of Opinion	2
Executive Summary	3
Discussion	5
1	Methodology	5
2	Description of Field Development Plan and Surrounding Key Infrastructure	6
	2.1	Field Development Plan: Base Case	7
	2.2	Local Infrastructure	7
3	Base Case and Sensitivities	9
	3.1	Parameters with Significant Uncertainty	9
4	Key Assumptions Used	10
5	Results and Analysis/Benchmarking Against Other Facilities	12
	5.1	Results	12
	5.2	Benchmarking	12
	5.3	Analysis of Results	14
6	Improvement Opportunities	15
	6.1	General	15
		6.1.1 VFF Emissions	15
		6.1.2 Reduction of Gas Flaring/Venting	15
		6.1.3 Specific Examples	15

List of Figures

Figure 1: Carbon Intensity Rating	3
Figure 2: The West Newton Opportunity in PEDL183	6
Figure 3: Proximity to Markets and Infrastructure	7
Figure 4: West Newton Field OPGEE Results	12
Figure 5: West Newton Field Carbon Intensity versus UK Onshore and Offshore Field Analogues....	13

Figure 6: West Newton Field Carbon Intensity versus All UK Fields & UK Gas and Condensate Fields

................................................................................................................................................	13
Figure 7: Main Contributors to West Newton Field (Base Case) Carbon Intensity (CI)	14

Reabold Resources PLC and Union Jack Oil PLC

21 May 2024

	List of Tables
Table 1: Summary of Base Case and Sensitivities/Results	4
Table 2: Description of Base Case, Sensitivities and Low Case	9
Table 3: List of OPGEE Inputs	10
Appendices
Appendix I:	Glossary

Reabold Resources PLC and Union Jack Oil PLC

21 May 2024

Introduction

At the request of Reabold Resources PLC and Union Jack Oil PLC ("the Client"), Gaffney, Cline & Associates Limited (GaffneyCline) has performed a Carbon Intensity study for the West Newton field.

Reabold Resources PLC (Reabold) and Union Jack Oil PLC (UJO) are individually listed on the London Stock Exchange AIM market. Reabold currently holds an approximate 56% economic interest in PEDL 183 and the West Newton project, through a direct 16.665% license interest and a 59% shareholding in Rathlin Energy, the operator of the Joint Venture for PEDL 183 (and with equity of 66.67%). UJO holds a 16.665% interest in PEDL 183.

Reabold and UJO have requested a carbon intensity evaluation study from GaffneyCline for the West Newton field. The effective date of this analysis is 21st May 2024.

GaffneyCline is an international petroleum consultancy, which has been operating worldwide since 1962. GaffneyCline focuses solely on the petroleum and energy industry, and specializes in the provision of policy, strategy, technical and commercial assistance to governments, financial institutions, and national and international oil, gas and energy companies worldwide. The provision of Carbon Management Practice advisory services and Carbon Intensity Assessments are core components of GaffneyCline's international business.

This report relates specifically and solely to the subject matter as defined in the scope of work proposal as set out herein, and is conditional upon the specified assumptions. The report must be considered in its entirety and must only be used for the purpose for which it is intended.

A glossary of terms and abbreviations is included as Appendix I.

Reabold Resources PLC and Union Jack Oil PLC
21 May 2024	1

Basis of Opinion

This document reflects GaffneyCline's informed professional judgment based on accepted standards of professional investigation and, as applicable, the data and information provided by the Client, the limited scope of engagement, and the time permitted to conduct the evaluation.

In line with those accepted standards, this document does not in any way constitute or make a guarantee or prediction of results, and no warranty is implied or expressed that actual outcome will conform to the outcomes presented herein. GaffneyCline has not independently verified any information provided by, or at the direction of, the Client and has accepted the accuracy and completeness of this data. GaffneyCline has no reason to believe that any material facts have been withheld, but does not warrant that its inquiries have revealed all of the matters that a more extensive examination might otherwise disclose.

The opinions expressed herein are subject to and fully qualified by the generally accepted uncertainties associated with the interpretation of technical data and do not reflect the totality of circumstances, scenarios and information that could potentially affect decisions made by the report's recipients and/or actual results. The opinions and statements contained in this report are made in good faith and in the belief that such opinions and statements are representative of prevailing physical and economic circumstances.

GaffneyCline has not undertaken a site visit and inspection because it was not included in the scope of work. As such, GaffneyCline is not in a position to comment on the operations or facilities in place, their appropriateness and condition, or whether they are in compliance with the regulations pertaining to such operations. Further, GaffneyCline is not in a position to comment on any aspect of health, safety, or environment of such operation.

GaffneyCline has also not included the impact of any current or potential future carbon pricing scheme.

GaffneyCline is not in a position to attest to property title or rights, conditions of these rights (including environmental and abandonment obligations), or any necessary licenses and consents (including planning permission, financial interest relationships, or encumbrances thereon for any part of the appraised properties).

Qualifications

In performing this study, GaffneyCline is not aware that any conflict of interest has existed. As an independent consultancy, GaffneyCline is providing impartial technical, commercial, and strategic advice within the energy sector. GaffneyCline's remuneration was not in any way contingent on the contents of this report.

In the preparation of this document, GaffneyCline has maintained, and continues to maintain, a strict independent consultant-client relationship with "the Client". Furthermore, the management and employees of GaffneyCline have no interest in any of the assets evaluated or are related with the analysis performed, as part of this report.

Staff members who prepared this report hold appropriate professional and educational qualifications and have the necessary levels of experience and expertise to perform the work.

Reabold Resources PLC and Union Jack Oil PLC
21 May 2024	2

Executive Summary

The full field development plan focusses on a gas development with associated condensate. The following conclusions can be drawn:

• The West Newton field has an AA rating for Carbon Intensity (see Figure 1);
• There is potential to improve the Carbon Intensity either by reducing fugitive, flaring and venting emissions further and by gas to grid development, reducing on site gas and condensate processing and using the shortest possible route to the National Grid.

Figure 1: Carbon Intensity Rating

Carbon Intensity Rating

		Current	Potential
AA < 5	2.87	2.66
A	5-7	Carbon Intensity =
gCO2eq./MJ
B	7-11
C	11-20
D	20-30
E	30-50
F	50-70
G	Over 70

Reabold Resources PLC and Union Jack Oil PLC
21 May 2024	3

The Carbon Intensity of the West Newton field was calculated using the Oil Production Greenhouse gas Emissions Estimator (OPGEE version 3.0b) with parameters selected from GaffneyCline's Global field database as well as specific West Newton parameters including the notional development plan and recovery mechanism. The Carbon Intensity of the West Newton field was benchmarked against other field analogues using the in-house Global field database.

In addition, the outcomes were analysed and insights provided on the major contributing factors to the overall Carbon Intensity of the field and which emission sources are the most cost effective to reduce.

The Base Case in addition to several sensitivity cases were considered as shown in Table 1.

Table 1: Summary of Base Case and Sensitivities/Results

	Case			Description			Carbon Intensity
					(gC02Eq/MJ)
				Maximum field gas rate 42 MMscfd, CGR =2.9 stb/MMscf
	Base Case		OPGEE Gas to the grid, condensate trucked, no water.	2.87
				Minimum Gas Processing: Dehydrator.
	Sensitivity 1		OPGEE Gas to the grid, condensate trucked, no water. Gas	2.66
		Processing: None
	Sensitivity 2		OPGEE Gas to the grid, condensate trucked, no water. Gas	4.01
		Processing: Dehydrator + Amine Process + Demethanizer
				OPGEE Gas to the grid via existing 3rd party facilities in the
	Sensitivity 3		area, condensate trucked, no water. Gas Processing:	4.11
				Dehydrator + Amine Process + Demethanizer,
				Maximum field gas rate 30 MMscfd, CGR =2.9 stb/MMscf
	Low Case		OPGEE Gas to the grid, condensate trucked, no water. Gas	4.19
				Processing: Dehydrator + Amine Process + Demethanizer

Figure 1 shows the Global Carbon Intensity Rating system GaffneyCline have developed. West Newton has an AA rating based on the Global Dataset.

The following recommendations are given:

• The most cost-effective sources of emissions that can be readily managed are likely to be Fugitive, Flaring and Venting.
• These emissions can be effectively managed within Conceptual and Front-End Engineering Design (FEED), by the development of fit for purpose procurement specifications such as tight leak-rate specifications and in the development of targeted commissioning and operations philosophies as well as detailed plans.
• On location processing of gas and condensate with minimum processing requirements subject to National Grid gas specification.
• Shortest connection point to the National Grid.
• An update of the Carbon Intensity study is recommended once the project is more advanced with a final field development plan.

Reabold Resources PLC and Union Jack Oil PLC
21 May 2024	4

Discussion

1 Methodology

For the Carbon Intensity evaluation GaffneyCline used a tool called the Oil Production Greenhouse gas Emissions Estimator (OPGEE), developed at Stanford University with support from GaffneyCline. This tool is used, amongst other applications, by the California Air Resources Board for regulation of transport fuel related Green House Gas (GHG) emissions.

The OPGEE tool selects parameters from a range of 'smart' defaults, however these are not always optimal for specific fields.

GaffneyCline is then able to harness appropriate parameters available from their proprietary Global database of Carbon Intensity evaluations for over 9,000 oil and gas fields, categorized with metadata for analogue field identification, and a classification system for recovery mechanism.

The following detailed approach was taken to the study of the West Newton field:

1. GaffneyCline determined the key input parameters and assumptions based on client provided information and by analysing the parameters from the Carbon Intensity database for analogous fields. The data required included the following:
2. 1. Specific West Newton reservoir and fluid parameters;
   2. Recovery mechanism;
   3. Notional Development Plan;
   4. Analysis of analogues from the database; and
   5. Discussion internally regarding the most suitable analogues and also adaptations of plant design parameters to reflect the high standards expected by the UK regulatory authorities.
3. The OPGEE tool was then used to calculate the Carbon Intensity of the West Newton field using the data identified above in step 1.
4. The Carbon Intensity of the West Newton field was then benchmarked against other field analogues in the UK and rated using the GaffneyCline Carbon Intensity Rating system for Global and Regional datasets.
5. Insights were provided on the major contributing factors to the overall Carbon Intensity and which emission sources are the most cost effective to manage downwards.

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21 May 2024	5

2 Description of Field Development Plan and Surrounding Key Infrastructure

The West Newton Kirkham Abbey Shoal accumulation was discovered by the West Newton A-1(2013-2014) well, which encountered an over-pressured Kirkham Abby Shoal. Several gas samples were collected on this well, however, a production test was not successful. A second well West Newton A-2 (2019) was drilled with good gas shows through the entire Kirkham Abbey section. West Newton B-1 and sidetrack B-1Z were drilled in 2020.

A Competent Person's Report (CPR) by RPS Energy was provided to GaffneyCline which concluded, based on the Petroleum Management Resource System (PRMS) requirements, that the discovered accumulation is currently categorized as Contingent Resources - development pending.

Figure 2 shows the West Newton field (Kirkham Abbey Shoal Discovery), PEDL 183.

Figure 2: The West Newton Opportunity in PEDL183

Source: UJO

The development plan is provided in the CPR and is described further in section 2.1.

Reabold Resources PLC and Union Jack Oil PLC
21 May 2024	6