Last checked at 2 Nov 2018 07:00
02 November 2018
Reabold Resources Plc
"Reabold" or "the Company"
Reabold California - Operational Update
Reabold, the oil and gas investing company, is pleased to provide an operational update on its onshore Californian assets as advised by the contract operator, Integrity Management Solutions ("IMS").
Highlights
· Venturini Ginnochio 3 ("VG-3") well successfully put onto production
· Second well now planned to be drilled within the West Brentwood licence area before the end of the year with the aim of accelerating production
· Notice of Intent to Re-Drill ("NOI") at Monroe Swell submitted and rig-site preparations starting
· Drilling of a well on the Grizzly Island licence area deferred due to prioritisation of an additional West Brentwood well
Following the successful drilling and testing of the VG-3 well, which delivered an initial rate of 200 barrels of oil per day ("bopd") and 60 thousand standard cubic feet per day ("scf/d"), IMS has put the well onto production. The well is initially being put on production using temporary production facilities, which will provide the necessary information to design a permanent facility. The permanent facilities will have a similar design to the temporary facilities except that the permanent facilities will have fixed oil storage and wash tanks rather than portable ones.
In addition to this, because of the success of the VG-3 well, the partners have taken the decision to prioritise the drilling of a second well on the West Brentwood licence, in which the Company has earned a 50 per cent. interest, ahead of the drilling of a well on Grizzly Island. This second well at West Brentwood is planned to be drilled before the end of the year, with the aim of accelerating the cashflow generated from the licence. As a result, Reabold has decided to defer the drilling of a well on Grizzly Island until 2019.
At the Monroe Swell licence, IMS is upgrading and smoothing the existing well pad in anticipation of re-drilling the Burnett 2 well. This should allow easier and safer accessibility for the rig to the site and is being undertaken in conjunction with the moving of well pumping equipment. A NOI has been submitted for Burnett 2 and is currently under the State of California Department of Conservation, Division of Oil, Gas and Geothermal Resources ("DOGGR") review process. The Company anticipates comment or acceptance from DOGGR in the near future and will make a further announcement(s) in due course.
Stephen Williams, Co-CEO of Reabold, commented:
"VG-3, Reabold's first drill, was a significant success for the Company and has provided Reabold with production and cashflow, as well as considerable optionality as we continue to develop our California portfolio. West Brentwood, which we gained exposure in June 2018, has performed in line with our highest expectations and, with VG-3 now in production, we anticipate strong cash returns on our investment.
"California is an exciting portfolio for Reabold, and we look forward to receiving yet more results before the year end."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
ENDS
For further information please contact:
Reabold Resources Plc Sachin Oza / Stephen Williams | c/o Camarco Tel. +44 (0)20 3757 4980 |
Strand Hanson Limited (Nominated and Financial Advisor) Rory Murphy / James Spinney / James Dance |
Tel. +44 (0)20 7409 3494 |
Camarco (PR) James Crothers / Oliver Head / Billy Clegg |
Tel. +44 (0)20 3757 4980 |
Whitman Howard Limited (Joint Broker) Hugh Rich / Grant Barker |
Tel. +44 (0)20 7659 1234 |
Turner Pope Investment (TPI) Ltd (Joint Broker) Andy Thacker |
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Notes to Editors
Reabold Resources is an investing company investing in the exploration and production ("E&P") sector. The Company's investing policy is to acquire direct and indirect interests in exploration and producing projects and assets in the natural resources sector, and consideration is currently given to investment opportunities anywhere in the world.
As an investor in upstream oil & gas projects, Reabold aims to create value from each project by investing in undervalued, low-risk, near-term upstream oil & gas projects and by identifying a clear exit plan prior to investment.
Reabold's long term strategy is to re-invest capital made through its investments into larger projects in order to grow the Company. Reabold aims to gain exposure to assets with limited downside and high potential upside, capitalising on the value created between the entry stage and exit point of its projects. The Company invests in projects that have limited correlation to the oil price.
Reabold has a highly-experienced management team, who possess the necessary background, knowledge and contacts to carry out the Company's strategy, demonstrated by existing investments in the UK, Romania and the United States.