26th Feb 2020 11:52
(Alliance News) - Reabold Resources said Wednesday its success at the VG-6 well, which lies within West Brentwood licence in California, has unlocked a new play field with more running room than previously anticipated.
The oil & gas company said VG-6 well was tested at 350 million standard cubic feet of gas per day and has been put on permanent production.
Success at VG-6, which was designed to test a new geological horizon at West Brentwood, has opened up a new play on the field and therefore additional follow on targets, the company said.
The company also said gross oil production across Reabold California, where company has 50% interest, was 50,286 barrels of oil equivalent between July and December 2019.
Meanwhile net revenue from hydrocarbon sales in California was USD1.3 million between July and December 2019.
Stephen Williams, co-chief executive officer, said:"The excellent economics of our operations in California are evident from the high gross profit margin we are delivering for minor expense. With the addition of VG-6, production is set to continue to increase through 2020, following a strong 2019 where we added incremental wells and grew our income profile."
Reabold Resources shares were trading 3.9% lower in London at 0.60 pence each on Wednesday.
By Loreta Juodagalvyte; [email protected]
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