27th Jun 2019 14:38
(Alliance News) - Mosman Oil & Gas Ltd said Thursday it plans to start drilling a third well on the Stanley project in Texas, following success at the first two.
Stanley-1, which was first drilled in July 2018 and re-completed in March, has exceeded 10,000 barrels in gross oil production, regarded as a "significant milestone". Average daily gross production has exceeded 155 barrels of oil per day. Mosman currently holds a 17% working interest in Stanley-1.
Stanley-2, which was drilled in March and then re-completed in an oil zone from a gas zone, is now producing oil. The target was moved due to the existing infrastructure's "limited" gas handling capacity.
Mosman, which holds a 19% working interest in the well, will report flow rates once steady production is achieved.
Finally, the company is planning to drill Stanley-3 in August, funding the cost of the well from existing cash reserves. Mosman has a 17% interest in Stanley-3.
"The board is pleased to see the growth potential at the Stanley project which continues to deliver increasing oil production, reinforcing the strategic move in the US and Mosman's investment decisions on the Stanley project. In addition, the Baja Strategic Alliance continues to be a valuable partnership as it continues to deliver attractive projects to Mosman," said Chair John Barr.
"Mosman looks forward to drilling Stanley-3 in August 2019, to be followed by Falcon-1, the first well at the Champion project," Barr added.
Shares in Mosman Oil & Gas were down 5.6% at 0.26 pence on Thursday.
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