Update on Reabold California

RNS Number : 2113Y

Reabold Resources PLC

20 August 2018

 

20th August 2018

Reabold Resources Plc

("Reabold" or "the Company")

Update on Reabold California

Reabold is delighted to announce that Integrity Management Solutions, contract operator of the Company's California investments, has informed the Company that the Venturini-Ginochio #3 well ("VG-3") on the West Brentwood license is now drilling.

VG-3 is targeting the updip portion of a previously produced field which has been identified on 3D seismic, and the drilling is expected to be completed within approximately the next two weeks. The well lies in an oil field with significant historic production and, if successful, VG-3 is planned to be put onto production as soon as possible, allowing Reabold to benefit from near-term cash flow.

This is the first of a planned multi-well campaign across the Reabold California assets, in which Reabold has the right to earn a 50% interest.  As announced on 14 June 2018, the West Brentwood licence has an Operator (non-compliant) estimated NPV of up to $25m* net to Reabold.

Stephen Williams, co-CEO, commented:

"We are delighted by the recent news out of California, including both the spudding of VG-3 and the encouraging signs coming from the workover programme at Monroe Swell. The valuable production and cash flow in the event of success from these campaigns is further vindication of our strategy to create value through the funding of near term drilling activity."

Sachin Oza, co-CEO, commented:

"The significant potential value of our high-impact California portfolio, and indeed our other investment projects, is extremely exciting and we are looking forward to progressing further into this busy period of activity."

*Volumetric, NPV (net present value) and resource estimates according to Integrity Management Solutions as the operator of the Leases. It should be noted that such estimates have not been prepared in accordance with any Reporting Standard under the AIM Rules and therefore should be treated with caution at this stage and should not be relied upon. 

ENDS

For further information please contact:

Reabold Resources plc Stephen Williams Sachin Oza	c/o Camarco [phone]
Beaumont Cornish Limited Roland Cornish James Biddle Felicity Geidt	[phone]
Camarco James Crothers Ollie Head Billy Clegg	[phone]
Whitman Howard Limited - Joint Broker Nick Lovering Grant Barker	[phone]
Turner Pope Investments (TPI) Ltd - Joint Broker Andy Thacker	[phone]

 

END

 

 

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