Proactive Investors - Run By Investors For Investors

Mosman Oil and Gas study sees “attractive economics” for horizontal well project in Texas

“The Welch project provides both a strong revenue stream and the foundation for growth."
oil and gas operations
A horizontal well could be drilled in the third or fourth quarter of this year

Mosman Oil And Gas Ltd (LON:MSMN) told investors that a completed prefeasability study assessing a possible horizontal well project, at the Welch Permian Basin property in Texas, would have “attractive economics” at the current oil price.

The company said the wells would have anticipated oil flow rates of 60 to 120 barrels per day, based on data from nearby wells, and a new reserves study is now underway, due in April.

READ: Mosman Oil and Gas earmarks £500,000 of new funds for evaluation of new opportunities

Mosman highlighted that the first horizontal well could be drilled and brought on production in the third or fourth quarter, and in the meantime a full feasibility study will be undertaken.

The reports will prove important when it comes to financing the project, according to Mosman.

"Mosman is very pleased with the results of the PFS at Welch and has instructed the commencement of the feasibility study,” said John Barr, Mosman chairman.

WATCH: Mosman Oil & Gas generating cash from Welch project in Texas

“The Welch project provides both a strong revenue stream and the foundation for growth.

“The horizontal well development is being systematically progressed and we expect to have several financing alternatives that will be finalised before the final development decision is made by the board."

View full MSMN profile View Profile

Mosman Oil And Gas Timeline

Related Articles

February 26 2018
Anfield Energy has a suite of attractive assets containing uranium and vanadium
Offshore oil operations, North Sea
October 09 2017
Statoil sees between 25mln and 130mln barrels of oil in the new discovery which was unearthed in the side-track to the previously unsuccessful Verbier exploration well.
Iodine plant
September 14 2017
Shares in the AIM-listed group soared 20% higher on Tuesday after it said the new IO#7 plant will be based around its existing IO#3 operations in Oklahoma - hitherto Iofina’s highest cost per kilo plant

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use