Reabold Resources PLC (LON:RBD) said work is about to get underway this week on a California oil licence in which it has an option to invest.
The Venturini-Ginochio #3 (VG3) well, part of the West Brentwood area, is targeting an up-dip portion of the onshore acreage prospective for crude identified during a 3D seismic survey.
Not long to wait for drilling results
Drilling is expected to take two weeks and if successful, the new well will go straight into production, generating cash flow for Reabold.
The AIM-listed group will be able to earn a 50% interest of what is likely to be a multi-well project.
"We are very pleased with the preparation for the first well in California, and keenly anticipate first the spud and then the result of VG-3,” said co-chief executive, Stephen Williams.
“Fast drilling times and the ability to put these wells onto production very efficiently mean that shareholders will not have long to wait for drilling results and valuable production and cash flow in the event of success."