Reabold upbeat on drilling at West Brentwood

20th Aug 2018 10:22

(Sharecast News) - Reabold Resources announced on Monday that Integrity Management Solutions, the contract operator of the company's California investments, has confirmed that the Venturini-Ginochio #3 well (VG-3) on the West Brentwood license was now drilling.The AIM-traded firm said VG-3 was targeting the updip portion of a previously-produced field which had been identified on 3D seismic, and the drilling was expected to be completed within the next two weeks.It said the well lay in an oil field with "significant" historic production and - if successful - VG-3 was planned to be put into production as soon as possible, allowing Reabold to benefit from near-term cash flow."We are delighted by the recent news out of California, including both the spudding of VG-3 and the encouraging signs coming from the workover programme at Monroe Swell," said Reabold co-chief executive officer Stephen Williams."The valuable production and cash flow in the event of success from these campaigns is further vindication of our strategy to create value through the funding of near term drilling activity."The board said it was the first of a planned multi-well campaign across the Reabold California assets, in which the company had the right to earn a 50% interest.As it announced on 14 June, the West Brentwood licence had an operator non-compliant estimated net present value of up to $25m, net to Reabold."The significant potential value of our high-impact California portfolio, and indeed our other investment projects, is extremely exciting and we are looking forward to progressing further into this busy period of activity," added the other co-CEO, Sachin Oza.