Reabold Resources PLC Update on Reabold California (5326X)
13 August 2018 - 4:00PM
UK Regulatory
TIDMRBD
RNS Number : 5326X
Reabold Resources PLC
13 August 2018
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:
Reabold Resources plc c/o Camarco
Stephen Williams +44 (0) 20 3757 4980
Sachin Oza
Beaumont Cornish Limited
Roland Cornish
James Biddle
Felicity Geidt +44 (0) 20 7628 3396
Camarco
James Crothers
Billy Clegg
Ollie Head +44 (0) 20 3757 4980
Whitman Howard Limited - Joint
Broker
Nick Lovering
Grant Barker +44 (0) 20 7659 1234
Turner Pope Investments (TPI)
Ltd - Joint Broker
Andy Thacker +44 (0) 20 3621 4120
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END
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