Mosman currently has a 27% working interest in the project, although it can choose to increase this to 33.3% at the end of this month (July).
Inland, the operator at Arkoma, recently installed two electrical submersible pumps with the aim of producing simultaneously from several zones.
But there were some initial delays due to damage caused by rain. The storms have now passed, and the results so far have been “encouraging” with the wells flowing variable amounts of oil, gas and water.
That said, the wells have “certainly not yet achieved a steady production state”, which will be a key factor when Mosman makes its decision.
The company expects steady state production can be achieved once the power supply is fully and consistently restored.
“The focus for Mosman at Arkoma is the 31 July decision point for exercising the option to increase ownership to 33.3%. The current electric storm delays and related damage are very unfortunate, but we believe the disruption is temporary,” said chairman John Barr.
“Despite weather related delays, Mosman is hopeful that steady state production will be established in good time for the option exercise decision to be made.”
Mosman shares rose 5.3% to 0.5p on Monday morning.