California Update 13/08/2018
Following the acquisition of Gaelic Resources Ltd in June 2018, Reabold has the option to drill multiple near term, high-impact wells in California (United States) which will earn Reabold a 50% interest across 3 license areas: West Brentwood, 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. As of October 2018, facilities are now in place for production in excess of 200 barrels of oil per day and 60 thousand cubic feet of gas per day (gross).
Given the success at VG-3, Reabold and Integrity Management Solutions, contract operator of the Company’s California investments, believe that an additional two wells may be optimal for the full development of the remaining potential at the West Brentwood field, with one well now planned to be drilled before the end of 2018.
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 which has been deferred due to prioritisation of a well on West Brentwood.
Should Monroe Swell be successful, like West Brentwood, it will be immediately put on production, providing cashflow for further drilling activity.
The total value of the California asset 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.