Reabold Resources 'delighted' over California oil discovery

Oil and gas investment company Reabold Resources on Thursday saw a commercial hydrocarbon discovery at the Venturini-Ginochio #3 well within the West Brentwood license area.

Integrity Management Solutions, the contract operator of the firm’s California investments, made the discovery after safely drilling the well to the planned target depth of 4,600ft which will now be completed as a producer.

Halliburton wireline logging at the site has confirmed the presence of approximately 60 feet of pay, in line with the AIM- traded company's pre-drilling targets, with surface cutting samples confirming the presence of hydrocarbons.

Stephen Williams, co-chief executive of Reabold, said: "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."

Reabold holds a 50% equity interest in the West Brentwood license, where work has begun in assessing whether there is potential to add a second well in order to enhance value further.

Sachin Oza, co-chief executive of Reabold, said: "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."

Integrity is finalising permitting for the next well in the Reabold California programme, set to be drilled on the Monroe Swell field, up-dip of a previously producing field.

Reabold Resources’ shares were up 3.74% at 0.91p at 1452 BST.