30th Jul 2018 11:04
LONDON (Alliance News) - Mosman Oil & Gas Ltd on Monday said its average daily production rose at the Welch project in the US state of Texas, boosted by work-overs.
The stock was trading 18% higher on Monday at 0.74 pence per share.
The oil exploration company said production at the Welch project totalled 1,180 barrels of oil gross between July 1 and Friday last week, of which 896 barrels are attributable to Mosman.
This represents an average gross production before royalties of 44 barrels per day, well up on the pace in the first half of 2018.
The result was driven by additional three wells worked over and restored to production since the end of June.
Earlier in July, Mosman reported production at Welch project at 4,309 barrels of oil for the six months to the end of June. The average production of 24 barrels per day for the first half of 2018 had been below well capacity as water injection pump repairs had limited well production, it had said.
Looking ahead, Mosman said Monday it has asked its consultants to consider any further wells that can be repaired in the near term.
"We proceeded with the repairs as a result of obtaining funding from the recent placement and the repairs have resulted in an immediate effect on production," said Chairman John Barr.
"This is an encouraging evidence that Mosman continues to achieve its strategic objectives to build a strong production base," added Barr.
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