California Update 13/08/2018
Following the acquisition of Gaelic Resources Ltd in June 2018, Reabold has earned at 50% interest in the West Brentwood license area in California (United Sates) and has the option to drill multiple near term, high-impact wells which will earn Reabold a 50% interest across 2 other license areas: Monroe Swell and Grizzly Island.
In August 2018, Reabold announced a commercial hydrocarbon discovery at the Venturini-Ginochio (VG-3) well within the West Brentwood license area. The well was safely drilled to the planned target depth of 4,600ft and is now a producing well.
Given the success at VG-3, Reabold and Integrity Management Solutions, contract operator of the Company’s California investments, believed that an additional wells would be optimal for the full development of the remaining potential at the West Brentwood field. Therefore, a second well at the West Brentwood licence, VG-4, was drilled safely and within budget in December 2018, to a total depth of 4,700ft. As of January 2019, the well is being completed and will be put onto production shortly.
In August 2018, Reabold announced that all four wells on the workover programme at Monroe Swell are indicating production of good oil and were put onto production.
Grizzly Island has been deferred due to the prioritisation of a well on West Brentwood.
Should Monroe Swell be successful, like West Brentwood, it will be put on production, providing near term cashflow.
The total value of the California assets have a combined NPV of up to $235m net to Reabold according to the contract operator (non-compliant).
Each of the projects is summarised below:
Monroe Swell Redevelopment:
- Worked over four previously produced wells
- All four wells are indicating production of good oil and have been put onto production
- Operator (non-compliant) estimate of potential value to Reabold $10 million
Monroe Swell Drilling:
- 3D defined, high-impact shallow prospects
- Operator (non-compliant) estimate of potential resource of more than 4 million barrels of oil
- Two-well programme to earn-in to 50% of the asset, the first to be drilled before the end of 2018, the second by mid-2019
- Operator (non-compliant) estimate of potential value to Reabold $100m
- Oil field with significant historic production
- Up-dip portion of the field undrained; well defined by 3D seismic
- 1-2 million barrels of oil in place
- One-well programme to earn 50%
- Operator (non-compliant) estimate of potential value to Reabold of $25 million
- Gas prospects with 50-90 bcf recoverable
- Defined by 70 square mile 3D seismic grid
- Two well programme to earn into 50%
- Operator (non-compliant) estimate of potential value to Reabold: $50-100M
The information in relation to the Monroe Swell, West Brentwood and Grizzly Island has been reviewed by Mr Dero Parker, President of Integrity Management Solutions. Mr Parker is a consultant and past owner operator of both oil and gas assets as well as hundreds of miles of 3-dimensional seismic data and has 42 years of technical, operational, commercial and management experience in appraisal, development and production of oil and gas resources. Mr. Parker has reviewed the data contained in this release in relation to Monroe Swell, West Brentwood and Grizzly Island and considers the information to be fairly represented. Mr. Parker has consented to the inclusion of this information in the form and context in which it appears.