LONDON (ShareCast) - (Sharecast News) - Reabold announced on Monday that workover activity at the Monroe Swell area, in which it holds a 50% equity interest following its recent acquisition of Gaelic Resources, was underway and showing initial signs of success.
The AIM-traded firm said the contract operator, Integrity Management Solutions, was undertaking a four-well workover programme, consisting of the Doud A-1, A-2, A-3 and A-7 wells.

Pumping units had been installed at all four locations, and well intervention work had taken place on the A-3 and A-1 wells, with significant oil shows said to be evident in both wells.

The A-3 well had now been put into production, the Reabold board reported.

It said the majority of fluids recovered to date consisted of the load water pumped into the well as part of the workover programme.

Integrity expected the rate of oil production to increase as that was recovered over the coming days.

The A-1 well would be put into production shortly, the board added, with well intervention work on A-2 and A-7 to follow.

"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," said chief executive Stephen Williams.

Reabold added that construction of the West Brentwood drilling location would take place this week.

West Brentwood would be the first well to be drilled on Reabold's California assets, and the board expected the well to spud in August.

"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," said co-CEO Sachin Oza.

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