15th Jul 2019 14:57
(Alliance News) - Mosman Oil & Gas Ltd on Monday said the Stanley-2 well in Texas is now on production, with output rates yet to fully settle.
Mosman currently has an 18.5% working interest in the Stanley-2 well.
Stanley-2 was drilled in March and flowed mainly gas. At the time, the operator of the well, Nadsoil LLC, decided to re-complete the well in an oil zone.
It has now been re-completed and is flowing oil, Mosman said on Monday, with in excess of 535 barrels of oil from Stanley-2 already sold.
The exploration and production company said the operator of the well added a heater-treater circuit along with the additional injection of chemical de-emulsifier at the well head. Following these works, Mosman has been advised that average gross production from the last seven days was 63.5 barrels of oil per day.
The Stanley-2 well production rates are yet to fully settle, Mosman said, as Nadsoil monitors and periodically adjusts choke settings and production equipment to optimise oil production.
Looking ahead, Mosman said the next potential increase in production is anticipated to be the drilling and completion of Stanley-3 in August.
"The flow rates from Stanley-2 are satisfying and fully justify the investment in the Stanley project," said Chair John Barr.
He added: "With oil production now established from multiple zones this demonstrates the potentially successful long-term nature of the Stanley field overall."
Mosman shares were trading 8.1% lower on Monday in London at 0.28 pence each.
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