Reabold Resources Plc (LON: RBD) has today announced that, further to its announcement of 22 March 2019, Integrity Management Solutions, contract operator of the Monroe Swell field in which Reabold will earn a 50 per cent. interest, has informed the Company of a successful drilling result and oil discovery at the Burnett 2B well in California, following on from the successful Burnett 2A well result announced on 11 March 2019.
The well was drilled safely and within budget, despite continued severe weather conditions, to a total depth of 894 metres, encountering the targeted Burnett and Lower Burnett sands. Significant oil and gas shows were seen within these formations and Halliburton wireline logging has confirmed the presence of estimated pay of 90 metres, ahead of pre-drill expectations. A production test is planned for both the Burnett 2B and 2A wells.
Reabold has an agreement with Sunset Exploration to pay the full drilling and completion costs of two wells within its Monroe Swell licence areas in order to earn a 50 per cent. net working interest in these licences. Once the Burnett 2A and the Burnett 2B have been completed to first sales, Reabold will have earned its 50 per cent. interest.
Additional activity beyond the initial two wells will be funded by Reabold on a 50 per cent. working interest basis.
Stephen Williams, Co-CEO of Reabold Resources Plc, commented:
“Success with the Burnett 2B well, following on from Burnett 2A, is highly encouraging. The decision to accelerate the Burnett 2B well and the speed with which the programme was executed is indicative of the pace of activity we can achieve on the licence. With low drilling and completion costs, short drilling times and extensive running room, Monroe Swell has the potential to deliver substantial production growth, coupled with highly attractive returns.
“We now look forward to testing these two wells and evaluating further drilling locations on Monroe Swell and will update the market accordingly.”
