- Reabold Resources reported a new oil discovery in California that appeared to be larger than initial expectations.

Reabold was due to earn a 50% interest in the Monroe Swell field, currently operated by Integrity Management Solutions.

The Burnett 2B well was drilled to a total depth of 894 metres, encountering the targeted Burnett and Lower Burnett sands.

Significant oil and gas shows were seen within these formations and Halliburton wireline logging had confirmed the presence of estimated pay of 90 metres, ahead of pre-drill expectations.

A production test was planned for both the Burnett 2B and 2A wells.

'Success with the Burnett 2B well, following on from Burnett 2A, is highly encouraging,' chief executive Stephen Williams said.

'The decision to accelerate the Burnett 2B well and the speed with which the programme was executed is indicative of the pace of activity we can achieve on the licence.'

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

Story provided by