Replacement: Update on Reabold California

RNS Number : 3708B

Reabold Resources PLC

20 September 2018

 

An amendment has been made to the 'Update on Reabold California - Successful Test at VG-3 Well, West Brentwood Licence' announcement released at 7.00 a.m. under RNS No. 3234B.

The original announcement incorrectly stated that "Integrity is now preparing facilities to accommodate production in excess of 200 barrels of oil per day and 60 million cubic feet of gas per day (gross)". This has been corrected to state "60 thousand cubic feet of gas per day (gross)".

All other details remain the same. The full amended text is shown below.

20 September 2018

Reabold Resources Plc

("Reabold" or "the Company")

Update on Reabold California - Successful Test at VG-3 Well, West Brentwood Licence

Reabold, the oil and gas investing company, is delighted to announce that Integrity Management Solutions ("Integrity"), contract operator of the Company's California investments, has informed the Company of a successful test at the Venturini-Ginochio #3 ("VG-3") well within the West Brentwood license area.

Integrity is now preparing facilities to accommodate production in excess of 200 barrels of oil per day and 60 thousand cubic feet of gas per day (gross). Post the first 36 hours of testing, Integrity has already accumulated over 400 barrels of oil (gross) ready for sales.

Given the successful results demonstrated at VG-3, Integrity believes that an additional two wells may be optimal for the full development of the remaining potential at the West Brentwood field.

As part of its earn-in agreement with Sunset Exploration, Reabold funded the VG-3 well to earn a 50% equity interest (operated by Integrity) in the West Brentwood license. Additional wells would be drilled at 50% paying interest and 50% equity interest to Reabold.    

Stephen Williams, co-CEO, commented:

"We are delighted with such a strong initial production rate at VG-3, which is significantly above our assumed range. The economics associated with the project should be extremely favourable, and the fact that we are likely to be able to further exploit the resource with additional wells is a further positive."

Sachin Oza, co-CEO, commented:

"Reabold's strategy of funding near-term drilling into de-risked, pre-cash-flow assets continues to play out successfully at West Brentwood. We look forward to our numerous upcoming wells both in California and within our other projects, and to bringing additional high impact assets into the Reabold portfolio."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

ENDS

The information contained in this release has been reviewed on the behalf of Reabold by Mr Dero Parker, President of Integrity Management Solutions. Mr Parker is a technical consultant and past owner operator of both oil and gas assets as well as hundreds of square miles of 3 dimensional seismic data and has 42 years of technical, operational, commercial and management experience in appraisal, development and production of oil and gas resources. Mr. Parker has reviewed the data contained in this release and considers the information to be fairly represented. Mr. Parker has consented to the inclusion of this information in the form and context in which it appears. 

For further information please contact:

Reabold Resources Plc Sachin Oza / Stephen Williams	c/o Camarco Tel. [phone]
Strand Hanson Limited (Nominated and Financial Advisor) Rory Murphy / James Spinney / Jack Botros	Tel. [phone]
Camarco (PR) James Crothers / Oliver Head / Billy Clegg	Tel. [phone]
Whitman Howard Limited (Joint Broker) Hugh Rich / Grant Barker	Tel. [phone]
Turner Pope Investment (TPI) Ltd (Joint Broker) Andy Thacker

Notes to Editors

Reabold Resources is an investing company investing in the exploration and production ("E&P") sector. The Company's investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world. 

 As an investor in upstream oil & gas projects, Reabold aims to create value from each project by investing in undervalued, low-risk, near-term upstream oil & gas projects and by identifying a clear exit plan prior to investment.

Reabold's long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.

Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company's strategy.

 

END

 

 

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