- Reabold Resources said a partner in the US had discovered oil at a well in California.

Integrity Management Solutions had informed the company of the successful result at the Monroe Swell field, in which Reabold would earn a 50% interest.

The Burnett 2A well in California encountered a net pay in excess of 60 metres, according to wireline logging, after reaching a total depth of 922 metres.

Reabold and Integrity Management Solutions now planned to test the well.

Reabold has an agreement with Sunset Exploration to pay the full drilling and completion costs of two wells within its Monroe Swell license areas in order to earn a 50% net working interest in the licenses.

Additional activity beyond the initial two wells would be funded by Reabold on a 50% working interest basis.

'Success with the Burnett 2A well is highly encouraging,' co-chief executive Stephen Williams said.

'With low drilling and completion costs, short drilling times and substantial running room, Monroe Swell can deliver substantial production growth coupled with highly attractive returns.'

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