(Alliance News) - Reabold Resources PLC on Tuesday said Integrity Management Solutions has started drilling the VG-6 well at the West Brentwood licence, onshore California in the US.
Reabold has a 50% interest in the West Brentwood licence and is paying 50% of the cost of drilling the VG-6 well.
Reabold's cost for the VG-6 well is expected to be fully funded from the revenue generated by its California business, the company said.
Reabold, which invests in oil & gas projects, also said VG-6 will be the third well drilled on the West Brentwood licence.
"We are very pleased to be drilling again at West Brentwood where we have had significant success with our previous wells," said Co-Chief Executive Stephen Williams.
"Importantly, the cash generated out of the existing California operations is now funding drilling activities, resulting in a self-funding growth business in California. Success at VG-6 would result in another uplift in cash generation from these assets," added Williams.
Reabold Resources shares were trading flat in London on Tuesday at 0.75 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Reabold Resources (RBD)