13th Mar 2020 11:32
(Alliance News) -Â Reabold Resources PLC on Friday noted recent volatile market conditions, and said its work programme for 2020 is already fully-funded and it is "financially robust".
The company, which focuses on investments in pre-cash flow upstream oil and gas projects, said a "fundamental" part of its business model is to participate in projects which have low development and operating costs.
The cash operating costs of Reabold California are USD13 per barrel of oil equivalent, meaning production in California continues to be profitable.
The firm's expected work programme for 2020 is fully-funded by cash already invested into its operating businesses.
"The programme includes the testing of West Newton A-2, the drilling of two wells at West Newton B, the testing of IM-1 and the drilling of IM-2 in Romania, and the drilling of additional wells in California. We believe that these projects remain highly economic at current oil prices," the company said.
Further, it has "in excess" of GBP6 million in cash beyond that invested into operating entities to fund the 2020 work programme, which is "available and uncommitted".
"Reabold and its investee companies are financially robust under current market conditions and Reabold is in a position to potentially take advantage of acquisition and investment opportunities that these conditions present," Reabold said.
Shares in Reabold were down 0.6% at 0.34 pence in London on Friday morning.
By Lucy Heming;Â [email protected]
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