Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Arkoma operations temporarily disrupted by thunderstorms, says Mosman Oil and Gas

Mosman has the option to increase its stake in Arkoma, but it wants to see steady state production achieved before it commits
storm clouds
The storms damaged some of the equipment, forcing the wells to shut down briefly

Heavy thunderstorms have temporarily disrupted operations at Mosman Oil And Gas Limited’s (LON:MSMN) Arkoma project in Oklahoma.

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.

READ: Arkoma sees first flow after ESP installation

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.

View full MSMN profile View Profile

Mosman Oil And Gas Timeline

Related Articles

power lines
March 13 2018
"We continue to pursue our strategy of asset maximisation and delivering responsible growth. In the last quarter we have established a new record for our operational performance," said Arvind Gupta
The project site in Greenland
March 22 2018
Kvanefjeld is forecast to be the largest producer of key rare earth elements for electric vehicles.
oil and gas operations
May 01 2018
It was a year of portfolio building and progress for the onshore UK-focused minor, punctuated by improved production volumes and a number of acquisitions with value-adding potential

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 Investors 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