Update on California - Discovery at VG-3 Well
30th August 2018
Reabold Resources Plc
("Reabold" or "the Company")
Update on Reabold California - Discovery at VG-3 Well, West Brentwood Licence
Reabold, the oil and gas investing company, is delighted to announce that Integrity Management Solutions ("Integrity"), contract operator of the Company's California investments, has informed the Company of a commercial hydrocarbon discovery at the Venturini-Ginochio #3 ("VG-3") well within the West Brentwood license area. The well was safely drilled to the planned target depth of 4600ft and will now be completed as a producer.
The well was drilled in a location up-dip of a previously-producing well on the West Brentwood field where logging equipment indicated the presence of good sands and significant oil and gas shows in the Second Massive target formation as well as additional strong gas shows in shallower horizons. Halliburton wireline logging confirmed the presence of approximately 60 feet of pay, in line with the Company's pre-drilling targets. Surface cutting samples were taken confirming the presence of hydrocarbons. Integrity will now begin installing production casing and completing the well as a producer.
As part of its earn-in agreement with Sunset Exploration, Reabold funded the VG-3 well to earn a 50% equity interest (operated by Integrity) in the West Brentwood license. Given the success at VG-3, Reabold and Integrity have begun work on assessing whether there is potential to add a second well at West Brentwood to enhance value further. A second well would be drilled at 50% paying interest and 50% equity interest to Reabold.
Additionally, Integrity have begun finalising permitting for the next well in the Reabold California programme, which will be drilled on the Monroe Swell field. Similarly to VG-3, this will test a target up-dip of a previously-producing field which has been identified on 3D seismic and has been considerably de-risked by the recent workover campaign of four older wells at Monroe Swell.
Stephen Williams, co-CEO, commented:
"We are delighted that the first well in the current six-well programme has been such a success. Reabold California is progressing as well as we could have hoped, with the workover programme already in production and now the first activity with the drill bit leading to a commercial discovery.
"We look forward to the drilling of additional wells in California and hope to deliver more good news for investors throughout the year and beyond."
Sachin Oza, co-CEO, commented:
"Reabold's strategy of funding near-term drilling into de-risked, pre-cash-flow assets has proven successful at West Brentwood. We look forward to the remaining five wells in the 2018 Reabold drilling campaign, and to further execution of our strategy into additional high impact projects."
ENDS
The information contained in this release has been reviewed by Mr Dero Parker, President of Integrity Management Solutions. Mr Parker is a consultant and past owner operator of both oil and gas assets as well as hundreds of square miles of 3 dimensional seismic data and has 42 years of technical, operational, commercial and management experience in appraisal, development and production of oil and gas resources. Mr. Parker has reviewed the data contained in this release and considers the information to be fairly represented. Mr. Parker has consented to the inclusion of this information in the form and context in which it appears.
Notes to Editors
Reabold Resources is an investing company investing in the exploration and production ("E&P") sector. The Company's investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world.
As an investor in upstream oil & gas projects, Reabold aims to create value from each project by investing in undervalued, low-risk, near-term upstream oil & gas projects and by identifying a clear exit plan prior to investment.
Reabold's long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.
Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company's strategy.
For further information please contact:
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Reabold Resources plc Stephen Williams Sachin Oza
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c/o Camarco +44 (0) 20 3757 4980 |
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Beaumont Cornish Limited Roland Cornish James Biddle Felicity Geidt
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+44 (0) 20 7628 3396 |
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Camarco James Crothers Ollie Head Billy Clegg
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+44 (0) 20 3757 4980 |
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Whitman Howard Limited - Joint Broker Nick Lovering Grant Barker
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+44 (0) 20 7659 1234 |
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Turner Pope Investments (TPI) Ltd - Joint Broker Andy Thacker |
+44 (0) 20 3621 4120 |
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