Reabold flows upward as California well test beats expectations

Reabold Resources climbed on Monday after a successful test at its VG-4 well at the West Brentwood field in California exceeded pre-drill expectations.

Over a 19-hour period, the well, in which Reabold holds a 50% interest, produced at rates as high as 1,029 barrels of oil per day before being choked back and averaging 480 barrels of oil per day and averaged 742 thousand cubic feet per day of gas.

Stephen Williams, co-chief executiveof Reabold, said: "VG-4 flow tested above our highest expectations and fully supports our strategy of accelerating cash flow from the West Brentwood field. The high productivity of oil and gas from VG-4 will deliver exceptional returns for our shareholders."

The well, which will now be prepared for production, produced cumulative oil over the 19-hour test period of 371 barrels, while the oil cut averaged in excess of 99.5%.

Sachin Oza, co-chief executive of Reabold, said: "Whilst longer term production rates have inherent uncertainty, we are delighted with the test rates from VG-4 and look forward to the drilling across the rest of Reabold's California prospects. It is quickly becoming an important building block in our portfolio and future growth."

Reabold Resources' shares were up 8.37% at 0.70p at 1237 GMT.