Reabold California

California Update 11/03/2019

California Update 06/03/2019



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 will have earned a 50% interest in the Monroe Swell license area following the completion of the two Burnett wells drilled in Q1 2019.  Reabold also has the option to earn a 50% interest in the Grizzly Island license by funding an additional well on that project.

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 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. VG-4 has since been put onto production and, as of April 2019, was producing in a range of 150-250 barrels of oil per day on a gross basis. The Company expects the oil rate to produce at significantly higher levels once the gas constraint has been removed, from which point Reabold will also benefit from sales revenues associated with the produced gas.

Drilling at the Burnett 2A well on Monroe Swell yielded a successful result in March 2019. Significant oil and gas shows were seen within the targeted Burnett and Lower Burnett Sands and wireline logging confirmed the presence of pay estimated in excess of 60 metres, ahead of pre-drill expectations. Burnett 2B also yielded a successful drilling result, 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 now 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.

It is currently anticipated that the first Grizzly Island appraisal well will be drilled in H2 2019.

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
  • Operator (non-compliant) estimate of potential value to Reabold $100m


West Brentwood:

  • 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
  • Operator (non-compliant) estimate of potential value to Reabold of $25 million


Grizzly Island:

  • Gas prospects with 50-90 bcf recoverable
  • Defined by 70 square mile 3D seismic grid
  • One 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 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.