Reabold Resources (LON:RBD) today announced that Integrity Management Solutions (“IMS”) has commenced drilling operations at the Burnett 2B well within the Monroe Swell field, onshore California, in which Reabold expects to earn a 50 per cent. equity interest.
Stephen Williams, Co-CEO of Reabold, commented:
“The success of Burnett 2A was a significant milestone for Reabold, as we unlocked the potential across the Monroe Swell asset which has considerable further upside. The secret to optimising potential value at Monroe Swell will be to drill multiple wells, and we are very pleased to have been able to spud our second well so soon after the first discovery. Burnett 2B represents our fourth California well and the sixth well within the Reabold portfolio since we started drilling at VG-3 seven months ago. We are delighted to be able to continue to offer consistent drilling activity for our investors, and in addition to Monroe Swell, are keenly anticipating drilling at West Newton, Parta and Grizzly Island.”
The drilling of Burnett 2B follows the successful Burnett 2A well drilled on the Monroe Swell field, as announced on 11 March 2019. Following the Burnett 2A drilling results, Reabold and IMS, made the decision to seek accelerated permitting for the Burnett 2B well, which was successful. The drilling rig was retained at Monroe Swell and, accordingly, is now drilling the 2B well.
Assuming success at Burnett 2B, both wells at Monroe Swell will be tested following the completion of drilling activities and put onto production shortly after.
Following the drilling and completion of Burnett 2B, Reabold will have completed its earn-in to the Monroe Swell licence area and will be assigned a 50 per cent. equity interest. Future activity at the Monroe Swell field will be undertaken at a 50 per cent. paying interest to Reabold.
