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LONDON (Alliance News) - Shares in Reabold Resources PLC climbed on Monday as the company announced an oil discovery at a Californian well.
Shares were up 17% at 0.67 pence each on Monday morning.
The discovery was made by the Burnett 2A well on the Monroe Swell field. Reabold is entitled to a 50% interest on the well, which is operated by Integrity Management Solutions.
Despite "severe" weather, Reabold said, the well was safely drilling within budget to 922 metres, finding "significant" oil and gas within the Burnett and Lower Burnett sands.
There is the presence of over 60 meters of net pay, Reabold said, which is ahead of expectations.
The well will now be tested, the company added.
Co-chief executives Stephen Williams and Sachin Oza said: "Success with the Burnett 2A well is highly encouraging. With low drilling and completion costs, short drilling times and substantial running room, Monroe Swell can deliver substantial production growth coupled with highly attractive returns.
"Following our success at West Brentwood, we are delighted to have made a significant discovery at Monroe Swell, which we have always considered the core asset within the US portfolio. Monroe Swell is expected to be a multi-well project which can unlock significant net present value potential."
The news represented a positive turn of events for Reabold. Last week, Reabold's Colter well in the UK showed a disappointing result in the northern part of the well.