RE: rns30 Aug 2018 09:36
For those traveling to work and wondering why we are 5.1% up so far today.
TIDM: RBD
RNS Number : 1995Z
Reabold Resources PLC
30 August 2018
30th August 2018
Reabold Resources Plc
("Reabold" or "the Company")
Update on Reabold California - Discovery at VG-3 Well, West Brentwood Licence
Reabold, the oil and gas investing company, is delighted to announce that Integrity Management Solutions ("Integrity"), contract operator of the Company's California investments, has informed the Company of a commercial hydrocarbon discovery at the Venturini-Ginochio #3 ("VG-3") well within the West Brentwood license area. The well was safely drilled to the planned target depth of 4600ft and will now be completed as a producer.
The well was drilled in a location up-dip of a previously-producing well on the West Brentwood field where logging equipment indicated the presence of good sands and significant oil and gas shows in the Second Massive target formation as well as additional strong gas shows in shallower horizons. Halliburton wireline logging confirmed the presence of approximately 60 feet of pay, in line with the Company's pre-drilling targets. Surface cutting samples were taken confirming the presence of hydrocarbons. Integrity will now begin installing production casing and completing the well as a producer.
As part of its earn-in agreement with Sunset Exploration, Reabold funded the VG-3 well to earn a 50% equity interest (operated by Integrity) in the West Brentwood license. Given the success at VG-3, Reabold and Integrity have begun work on assessing whether there is potential to add a second well at West Brentwood to enhance value further. A second well would be drilled at 50% paying interest and 50% equity interest to Reabold.
Additionally, Integrity have begun finalising permitting for the next well in the Reabold California programme, which will be drilled on the Monroe Swell field. Similarly to VG-3, this will test a target up-dip of a previously-producing field which has been identified on 3D seismic and has been considerably de-risked by the recent workover campaign of four older wells at Monroe Swell.
Stephen Williams, co-CEO, commented:
"We are delighted that the first well in the current six-well programme has been such a success. Reabold California is progressing as well as we could have hoped, with the workover programme already in production and now the first activity with the drill bit leading to a commercial discovery.
"We look forward to the drilling of additional wells in California and hope to deliver more good news for investors throughout the year and beyond."
Sachin Oza, co-CEO, commented:
"Reabold's strategy of funding near-term drilling into de-risked, pre-cash-flow assets has proven successful at West Brentwood. We look forward to the remaining five wells in the 2018 Reabold drilling campaign, and to further execution of our strategy into additional high impact pro
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