31st Jul 2019 14:45
(Alliance News) - Mosman Oil & Gas Ltd on Wednesday reported a sharp improvement in oil production in the half and full year, and said it expects further growth as it develops further two wells.
The exploration and production company said gross production for the six months to the end of June was 37,811 barrels of oil equivalent and the net production attributable to Mosman was 11,742 barrels of oil equivalent.
Gross production for the year ending June 30, was 55,508 barrels of oil equivalent and the net production attributable to Mosman was 18,216 barrels of oil equivalent.
The results reflect both the increase in the number of producing wells and continued increases in production rates at the projects that Mosman has ownership in, the company explained.
"Mosman continues to grow its production with a significant 81% increase in the second half over the first half which reflects general increases in production and the Stanley wells," said Chair John Barr.
Mosman also highlighted the increase in production at the Stanley project, located in US state of Texas, in the month of July. The Stanley project has produced gross 6,010 barrels of oil equivalent representing a daily average gross production of 215 barrels of oil equivalent daily.
This compares to the Stanley gross production of 14,153 in the six-months and represents a daily average gross production of 79 barrels of oil equivalent daily during the six-month period to June 30.
Looking ahead, Mosman said further production increases are expected from the drilling of the Stanley-3 well, which is due to spud shortly, and the Falcon-1 well, which is due to spud in the current quarter.
"The further increases at Stanley in July are particularly pleasing and this, combined with the two further wells which are due to be drilled this quarter using existing cash resources, provides further exciting growth opportunities," added Barr.
Mosman shares were trading 7.4% higher on Wednesday in London at 0.26 pence each.
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