Reabold seeking quick returns on California project after successful workover

Oil and gas investment company Reabold Resources on Monday confirmed that work is scheduled to commence this week on a California oil licence in which it has an option to invest.

A rig has been mobilised and drilling, which is expected to last for two weeks, will go ahead on the Venturini-Ginochio #3 well in the West Brentwood area in which Reabold has the right to earn a 50% interest.

Stephen Williams, joint chief executive of Reabold, said: "Fast drilling times and the ability to put these wells onto production very efficiently mean that shareholders will not have long to wait for drilling results and valuable production and cash flow in the event of success."

The well is being drilled to target an up-dip portion of the onshore acreage prospective for crude identified during a 3D seismic survey.

Meanwhile, the AIM-traded firm also reported all four wells at the Monroe Swell asset in California, in which Reabold holds a 50% equity interest, are now indicating production of good oil.

Stabilised production is now being sought at the wells following a full work-over programme.

Sachin Oza, joint chief executive of Reabold, said: "A successful Monroe Swell workover programme demonstrates extremely impressive financial return metrics, and delivers very quick cash flow. We are very pleased with the progress of the workover programme, and excited to be moving into the more substantial, higher impact drilling phase of the California campaign."

Reabold Resources’ shares were down 2.78% at 0.88p at 1128 BST.