Update on Reabold California
13th August 2018
Reabold Resources Plc
("Reabold" or "the Company")
Update on Reabold California
Reabold, the oil & gas investing company, is pleased to announce that Integrity Management Solutions, contract operator of the California licences in which Reabold has options to invest, expects to spud the Venturini-Ginochio #3 well on the West Brentwood license this week. The drilling site has been constructed and the rig is currently being mobilised.
This is the first of a planned multi-well campaign on the California assets, in which Reabold has the right to earn a 50% interest.
The VG-3 well is targeting the updip portion of a previously produced field identified on 3D seismic. The drilling is expected to be completed within approximately two weeks of spud. Assuming the well is successful, it is planned to put VG-3 into production as soon as possible, therefore generating near term cash flow for Reabold.
Stephen Williams, co-CEO commented:
"We are very pleased with the preparation for the first well in California, and keenly anticipate first the spud and then the result of VG-3. Fast drilling times and the ability to put these wells onto production very efficiently mean that shareholders will not have long to wait for drilling results and valuable production and cash flow in the event of success."
Reabold is also pleased to announce further success on the Monroe Swell workover programme, in which Reabold holds a 50% equity interest.
Contract operator Integrity Management Solutions is undertaking a four well workover programme, consisiting of the Doud A-1, A-2, A-3 and A-7 wells. Following the previous announcement of initial production from the A-3 well, we are pleased to be able to report that all four wells are now indicating production of good oil, and therefore we expect to put all four wells onto production in the coming days. We expect to provide a stabilised production rate once all wells are producing and the load water injected into the wells as part of the workover programme is recovered and removed.
The success of the workover programme to date is at least in line with expectations and therefore with previously reported NPV potential.
Sachin Oza, co-CEO commented:
"A successful Monroe Swell workover programme demonstrates extremely impressive financial return metrics, and delivers very quick cash flow. We are very pleased with the progress of the workover programme, and excited to be moving into the more substantial, higher impact drilling phase of the California campaign."
ENDS
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 Billy Clegg Ollie Head
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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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