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Reabold Resources moves closer to earn-in at Monroe Swell

By Josh White

Date: Friday 22 Mar 2019

Reabold Resources moves closer to earn-in at Monroe Swell

(Sharecast News) - Reabold Resources announced on Friday that Integrity Management Solutions (IMS) has started drilling operations at the Burnett 2B well within the Monroe Swell field, onshore California, in which the company expected to earn a 50% equity interest.
The AIM-traded firm said the drilling of Burnett 2B followed the successful Burnett 2A well drilled on the Monroe Swell field, which it announced on 11 March.

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 was now drilling the 2B well.

Assuming success at Burnett 2B, both wells at Monroe Swell would be tested following the completion of drilling activities, and put onto production shortly after.

After the drilling and completion of Burnett 2B, Reabold said it would have completed its earn-in to the Monroe Swell licence area and would be assigned a 50% equity interest.

Future activity at the Monroe Swell field would be undertaken at a 50% paying interest to Reabold.

"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," said Reabold Resources co-chief executive officer Stephen Williams.

"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."

Williams said Burnett 2B represented the company's fourth California well, and the sixth well within the Reabold portfolio since it 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."

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