Reabold Resources (RBD) released a third party reserves report for its West Brentwood field in California on Thursday.
The report revealed 980,000 barrels of oil equivalent of proven reserves to Reabold’s 50% working interest in the field, equating to a NPV10 of $19.3 million.
Stephen Williams, Co-CEO of Reabold, said: "The 6x multiple on cash investment to date at West Brentwood has been delivered even whilst Reabold has been paying almost 100 per cent. of the costs, and economics can essentially double on a go forward basis.”
He added: “We have further running room at West Brentwood, and significant opportunity to create further value at Monroe Swell and Grizzly Island."
The company reported Proved Developed Producing reserves of 652,940 barrels from wells VG-3 and VG-4, and Proved Undeveloped reserves of 327,920 barrels from its upcoming VG-5 location.
Additional potential drilling locations at West Brentwood, including probable and possible upsides weren’t included in the valuation calculation.
The company has been paying 100% of the expenditure costs to date at West Brentwood but told investors that all expenditure will be funded on a 50% basis going forward.
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