LONDON (ShareCast) - (Sharecast News) - Upstream oil and gas investment company Reabold Resources updated the market on its operations in California on Wednesday, reporting that the VG-6 well on West Brentwood had tested at 350 million standard cubic feet per day, and was now on permanent production.
The AIM-traded firm also said a new play at the West Brentwood field had opened up, providing additional follow-on targets.

It reported gross oil production across Reabold California of 50,286 barrels of oil equivalent between July and December 2019, of which it had a 50% equity interest.

revenue to Reabold from hydrocarbon sales in California totalled $1.35m in the same period, and the company said its estimated cash operating cost per barrel of oil equivalent was $13.

"We are delighted to have drilled our fifth successful well in California and to see strong rates of production from a previously untested horizon," said co-chief executive officer Stephen Williams/

"Success at VG-6 has unlocked a new play with more running room at West Brentwood than we had previously anticipated."

Williams said the "excellent" economics of the company's operations in California were evident from the high gross profit margin it was delivering for minor expense.

"With the addition of VG-6, production is set to continue to increase through 2020, following a strong 2019 where we added incremental wells and grew our income profile."

At 1522 GMT, shares in Reabold Resources were down 3.23% at 0.6p.

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