RE: Still to come14 Nov 2018 13:24
We refer to them collectively but there is more than one project here.
Following the acquisition of Gaelic Resources Ltd in June 2018, Reabold has the option to drill multiple near term, high-impact wells in California (United States) which will earn Reabold a 50% interest across 3 license areas: West Brentwood, Monroe Swell and Grizzly Island.
In August 2018, Reabold announced a commercial hydrocarbon discovery at the Venturini-Ginochio (VG-3) well within the West Brentwood license area. The well was safely drilled to the planned target depth of 4,600ft and is now a producing well. As of October 2018, facilities are now in place for production in excess of 200 barrels of oil per day and 60 thousand cubic feet of gas per day (gross).
Given the success at VG-3, Reabold and Integrity Management Solutions, contract operator of the Company’s California investments, believe that an additional two wells may be optimal for the full development of the remaining potential at the West Brentwood field, with one well now planned to be drilled before the end of 2018.
In August 2018, Reabold announced that all four wells on the workover programme at Monroe Swell are indicating production of good oil and were put onto production.
Grizzly Island which has been deferred due to prioritisation of a well on West Brentwood.
Should Monroe Swell be successful, like West Brentwood, it will be immediately put on production, providing cashflow for further drilling activity.
The total value of the California asset have a combined NPV of up to $235m net to Reabold according to the contract operator (non-compliant).
Each of the projects is summarised below:
Monroe Swell Redevelopment:
Worked over four previously produced wells
All four wells are indicating production of good oil and have been put onto production
Operator (non-compliant) estimate of potential value to Reabold $10 million
Monroe Swell Drilling:
3D defined, high-impact shallow prospects
Operator (non-compliant) estimate of potential resource of more than 4 million barrels of oil
Two-well programme to earn-in to 50% of the asset, the first to be drilled before the end of 2018, the second by mid-2019
Operator (non-compliant) estimate of potential value to Reabold $100m
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