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(Alliance News) - Reabold Resources PLC on Thursday said it is "delighted" with a reserve update for its 50%-owned West Brentwood field, onshore California.
Reabold's net interest in the field is now nearly 1 million barrels of oil equivalent, standing at 980,860 barrels. Around two-thirds of this comes from proved, developed, and producing reserves, with the rest from proved and undeveloped reserves.
This gives a net present value for Reabold's stake of USD19.3 million, compared to total expenditure as of June 30 of USD2.9 million. Reabold has so far funded nearly all exploration at the field to earn its 50% stake, but going ahead work will be shared on a 50/50 basis.
Co-Chief Executive Stephen Williams said: "We are delighted to be able to demonstrate independent validation with regard to the impressive economic returns we have been able to achieve in California.
"The six times multiple on cash investment to date at West Brentwood has been delivered even whilst Reabold has been paying almost 100% of the costs, and economics can essentially double on a go forward basis. We have further running room at West Brentwood, and significant opportunity to create further value at Monroe Swell and Grizzly Island."
Reabold shares were 8.3% higher on Thursday afternoon in London at 1.24 pence each.
By George Collard; georgecollard@alliancenews.com
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