18th Apr 2018 13:21
LONDON (Alliance News) - Mosman Oil & Gas Ltd said Wednesday the results of independent report on proved reserves at its Welch Permian Basin project in Texas suggest it will meet its "stated strategy of delivering operating cash flow and having development upside".
The proved reserves at Welch showed 234,000 barrels of oil with a net present value of USD2.0 million. The report was prepared by Moyes & Co.
Included in proved reserves are incremental proved undeveloped reserves of 102,000 barrels with and net present value of USD597,000 for a single proposed horizontal oil well, that "represents an encouraging potential development opportunity", according to Mosman.
Chairman John Barr said: "Welch meets the stated strategy of delivering operating cash flow and having development upside.
"We are pleased to achieve this milestone of proved reserves that underpins our view that Welch was a sound acquisition, at the right time, and where we have added value in less than 12 months. Importantly, the proved reserves identified at Welch should provide a basis for being able to obtain bank debt to assist in funding further production growth. Looking forward at Welch, we continue to evaluate horizontal wells with the objective of having a development plan to put before the Board later in 2018."
Shares in Mosman were down 1.8% Wednesday afternoon to 0.71 pence each.
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