25th Jun 2019 16:20
(Alliance News) - Mosman Oil & Gas Ltd said Tuesday it is on track to see further increases in production.
At the company's 16.5%-owned Stanley development project in south Texas, US, Mosman, in March, participated in the re-completion of the Stanley-1 well and drilled well Stanley-2.
Stanley-1 is currently producing oil in line with expectations, the company said. The re-completion of Stanley-2 is scheduled to start this month.
Mosman said there are also plans in place to drill a third well at the project, Stanley-3.
"This well is expected to be drilled in the next 90 days and will target the same reservoir zones as Stanley-1 and Stanley-2," the company said.
At Mosman's wholly-owned Welch project in north Texas, the company said routine workovers are being performed to maintain production.
At its Champion project, in south east Texas, work is proceeding to drill the first well, Falcon-1, in the next quarter. Mosman's currently holds a 60% interest in the project but this will reduce to 35% the more work is carried out at the project.
In Australia, Mosman said progress continues at EP-145 in its Amadeus Basin project in central Australia, south of Alice Springs. The company said it is finalising discussions with the Northern Territory government and local indigenous groups on "various requirements" needed to be allowed to carry out seismic work.
"This is an important part of obtaining the required clearances to enable ground access and permission to conduct the seismic work. If required, an extension may be sought which, if granted, will allow additional time for obtaining approvals and then acquiring seismic to finalise a drilling location," the company added.
Chair John Barr said: "The recent placing has enabled Mosman to fund a number of priority expenditure requirements and continue to advance its strategic objective by drilling more wells."
"Importantly we are on track to deliver further increases in production and participating in new wells," added Barr.
In May, Mosman placed 250 million new shares at a price of 0.3 pence each, raising GBP750,000, to fund its drilling work in Texas.
Shares in Mosman were down 4.4% in London on Tuesday afternoon at 0.26 pence each.
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