Reabold Resources commences drilling at West Brentwood's VG-6 well
The company revealed that the contract operator of the licence, Integrity Management Solutions (“IMS") had kick-started operations following on from the successful VG-3 and VG-4 wells, which are currently in production at West Brentwood.
Stephen Williams, Co-CEO of Reabold said the group were “very pleased” to have commenced drilling again at the Californian licence where both VG-3 and VG-4 had shown “significant success”.
The company, who hold a 50% equity interest in the licence, is now covering 50% of the costs of drilling for VG-6 - with the group having earned its equity interest by previously funding 100% of the VG-3 and VG-4 wells.
Shares in Reabold Resources were trading 2% higher at 0.765p on Tuesday morning.
In a previous statement, the company detailed the “favourable economic returns” generated at the licence, with the company, alongside its partners, electing for further drilling.
“Importantly, the cash generated out of the existing California operations is now funding drilling activities, resulting in a self-funding growth business in California,” commented Williams.
He further explained that success at the VG-6 well would ultimately result in another uplift in cash generation from these assets.
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