Reabold Resources, Union Jack Oil and Rathlin Energy said initial analysis of a well drilled in West Newton indicated the site could be housing 189 billion cubic feet of gas or more. Stephen Williams, co-chief executive of Reabold, said: “First indications look as good or better than we had before so we are very confident on the size, if not larger.” The speed at which the gas moves from the rock to the surface, also known as flow rate of the well, will be tested during the next three months. This last test will certify whether the area really is the gold mine it promises to be. 

If West Newton really is the UK’s largest onshore gas field, the companies will then drill additional wells, move towards production and sell off the asset.

Mr Williams said: “There will be industry interest in this project given the scale and that it is geologically attractive so we will be engaging other parties that want to take asset forward.

“All options for future development are on the table.”

But the news itself of the potential discovery has already been beneficial to these companies, with shares in Reabold and Union Jack Energy skyrocketing by 35 and 37 percent today. 

Analysts at financial services company Cantor Fitzgerald said: “This looks a cracking result for the partners which should have their share prices flying this morning.”

Rathlin Energy drilled the initial well at West Newton, just a few miles northeast of Hull, in 2014.

But it scrambled to get enough funds to drill a second well after the oil price collapsed together with investors’ interest in gas projects.

Reabold invested £3m in Rathlin Energy to back its drilling project and gave the company a 36 percent stake and a 25 percent share of the gas project. 

Union Jack Oil, which was also interested in this venture, put a 16.7 percent interest in the West Newton drilling project.

Mr Williams doesn’t hide the companies may be in for a massive gain, saying he is eyeing “extremely high rates of return”.

He continued: “It is interesting it has taken a somewhat unconventional group of companies to find this, the largest onshore gas field in the UK.

“That is a characteristic of the industry that the larger companies tend to move in sync and very attractive projects can be left behind, so it takes a slightly different perspective.”

West Newton could even turn out to be storing oil, as analysis shows that there may be “significant liquids” in the well. 

Mr Williams hailed these drilling a great opportunity thanks to the area’s composition, as West Newton discovery is in carbonate rather than sandstone rock, as most gas fields in the UK are.

He said: “Some operators are put off carbonate as they tend to be unpredictable, but when they work they tend to be extremely effective.

“It’s the quality of rock that typically determines the rate of economic return on capital deployed on these projects.”

The biggest onshore gas field so far discovered in Britain is in Saltfleetby, Lincolnshire, discovered in 1973.    

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