2nd Nov 2018 11:58
LONDON (Alliance News) - Reabold Resources PLC said on Friday it has seen strong progress on its onshore California assets, with one well put into production and a second well now planned to be drilled in the West Brentwood licence area before the end of 2018.
Following the successful drilling and testing of the Venturini Ginnochio 3 well, which delivered an initial rate of 200 barrels of oil and 60,000 cubic feet per day, the well has now been put into production.
A second well will now be drilled on the licence, ahead of the drilling of a well on Grizzly Island. The second West Brentwood well is expected to be drilled before the end of the year, while Grizzly Island drilling has been deferred to 2019.
In addition, the notice of intent to re-drill Burnett 2 at the Monroe Swell licence and is currently under the state of California Department of Conservation, Division of Oil, Gas and Geothermal Resources review process.
"VG-3, Reabold's first drill, was a significant success for the company and has provided Reabold with production and cashflow, as well as considerable optionality as we continue to develop our California portfolio. West Brentwood, which we gained exposure in June 2018, has performed in line with our highest expectations and, with VG-3 now in production, we anticipate strong cash returns on our investment," said co-Chief Executive Officer Stephen Williams.
Shares in Reabold Resources were up 0.3% at 0.73 pence on Friday.
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