RBD – Update on Reabold California

Reabold is pleased to announce that workover activity at the Monroe Swell area, in which Reabold holds a 50% equity interest following its recent acquisition of Gaelic resources, is underway and showing initial signs of success.

Contract operator Integrity Management Solutions is undertaking a four well workover programme, consisiting of the Doud A-1, A-2, A-3 and A-7 wells.  Pumping units have been installed at all four locations, and well intervention work has taken place on the A-3 and A-1 wells, with significant oil shows evident in both wells.

The A-3 well has now been put onto production.  The majority of fluids recovered to date consist of the load water pumped into the well as part of the workover programme; Integrity expect the rate of oil production to increase as this is recovered over the coming days.

The A-1 well will be put onto production shortly, with well intervention work on A-2 and A-7 to follow.

Stephen Williams, co-CEO commented:

“In addition to the early cash flow and impressive financial return metrics, a successful workover programme also provides much encouragement for the subsequent drilling activity that will take place on the California assets in the coming weeks and months.”

Construction of the West Brentwood dilling location will take place this week.  West Brentwood will be the first well to be drilled on Reabold’s California assets, and we expect the well to spud in August.

Sachin Oza, co-CEO commented:

“We are delighted that California has already gone into production, and look forward to an extremely exciting next few months, with multiple drilling events taking place across our diversified portfolio of investments.”