Reabold Resources Plc (LON:RBD) has this morning announced that Integrity Management Solutions, contract operator of the Monroe Swell field in which Reabold will earn a 50% interest, has informed the company of a successful drilling result and oil discovery at the Burnett 2A well in California.
The well was safely drilled and within budget, despite severe weather conditions, to a total depth of 922 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 pay estimated in excess of 60 metres, ahead of pre-drill expectations.
Reabold and IMS now plan to test the well.
Reabold has an agreement with Sunset Exploration to pay the full drilling and completion costs of two wells within its Monroe Swell license areas in order to earn a 50% net working interest in these licenses. Additional activity beyond the initial two wells will be funded by Reabold on a 50% working interest basis.
Stephen Williams, Co-CEO of Reabold Resources plc, commented:
“Success with the Burnett 2A well is highly encouraging. With low drilling and completion costs, short drilling times and substantial running room, Monroe Swell can deliver substantial production growth coupled with highly attractive returns.”
Sachin Oza, Co-CEO of Reabold, commented:
“Following our success at West Brentwood, we are delighted to have made a significant discovery at Monroe Swell, which we have always considered the core asset within the US portfolio. Monroe Swell Is expected to be a multi-well project which can unlock significant NPV potential.”