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LONDON (Alliance News) - Reabold Resources PLC on Tuesday said that the VG-4 well at the West Brentwood field has been put into production.
Reabold hold a 50% equity interest in the field, located in California, US.
The well has been put into production at a choked back rate, reducing gas production to an acceptable level, in advance of the completion of a tie-in. VG-4 is currently producing in a range of 150-250 barrels of oil per day on a gross basis.
"The significant volume of gas produced, in addition to the oil, during the VG-4 test, has meant that the well cannot be produced at its full rate until a tie-in to a nearby gas pipeline has been completed," the company explained.
The company expects the oil rate to produce at "significantly higher levels" once the gas constraint has been removed, Reabold said.
Reabold shares were trading up 0.8% at 0.63 pence each.