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Reabold Resources confirms California oil discovery

Published: 18:12 30 Aug 2018 AEST

oil and gas operations
It is located up-dip from a past producing field

Reabold Resources Plc (LON:RBD) has a new oil discovery on the books as the  Venturini-Ginochio 3 (VG3) well, in the West Brentwood license area, California.

The project operator informed Reabold that the well was drilled down to a target depth of 4,600 feet, and, encountered significant oil and gas shows, 60 feet of pay which was in line with pre-drill expectations.

Drilled up-dip of a past producing well on the West Brentwood field the new well will be completed for production.

READ: Reabold may see quick return from California success

Reabold funded 50% of the VG3 well costs and the operator is now assessing whether to follow up the success by drilling additional well.

The company will also be required to cover 50% of the costs of an additional well.

Separately, the operator is working on the permitting for the next planned well in the programme, which will be located in the Monroe Swell field. Here, the plan is to similarly test a target up-dip from a past producing operation.

"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,” said Stephen Williams, Reabold co-chief executive.

"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, Reabold’s other co-chief executive, added: "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 projects."

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