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Reabold Resources said it had yielded a higher-than-expected flow rate from a well in California after performing a clean out operation.
The company had re-entered and cleaned out perforated zones at Burnett 2B well on Monroe Swell.
The well was now flowing at a currently constrained at 40 barrels of oil per day.
Work was underway on Burnett 2B to increase the capacity of production facilities, allowing for increased production with a rate to be determined.
Reabold also said that it and its joint venture partners were evaluating drilling further wells on Monroe Swell and West Brentwood.
'Our Californian assets continue to exceed our expectations, with the higher-than-expected flow rates at Burnett 2B generating more valuable cash for Reabold,' co-chief executive Stephen Williams said.
'We continue to be excited by the significant running room on the licences, particularly given the high-margin production in California, and we look forward to future drilling across Monroe Swell, West Brentwood and Grizzly Island.'
At 8:15am: (LON:RBD) Reabold Resources Plc share price was -0.03p at 1.18p