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Mosman Oil and Gas hails Texas wells as a success after hitting multiple pay zones

The company is sticking with its pre-drill forecast of 150 barrels of oil per day and said the drill log data was better than expected
oil field
The site is being readied for production

Mosman Oil And Gas Limited (LON:MSMN) shares rose on Wednesday as the explorer hailed the successful completion of the Stanley Development well in Texas, which hit multiple pay zones.

Stanley-1’s primary reservoir was host to gross pay (an oil-bearing section) 19 metres thick with a porosity of around 18%. Porosity defines the capacity of the reservoir rock to hold oil.

Mosman said drill log data was better than expected and sees no reason to change pre-drill forecast for an initial flow rate of around 150 barrels a day.

WATCH: Mosman Oil & Gas hits multiple pay zones at Stanley Development well

The next step is to install production facilities, which should take one to two months before the well is completed as a producer.

The AIM-listed exploration group said the well completion secured its 16.5% interest in the Livingston Oil Field and added that further development drilling would be considered in “due course”.

Stanley-1 was the first well drilled as part of its strategic alliance with Texas-based Baja Oil & Gas.

Partner owns substantial inventory

Mosman said the US group owns “a substantial existing inventory” of oil and gas development projects and is continuing to add projects to the inventory.

Under the terms of the deal, the UK oiler has the option to invest in future projects.

On Monday, Mosman said that a workover programme significantly boosted output from the Welch project, also in Texas.

Looking for new opportunities 

"Mosman continues to pursue its strategic objective to identify opportunities which will provide operating cash flow and have development upside, in conjunction with exploration of existing exploration permits,” said chairman John Barr.

"The success at Stanley and the recent production increases at Welch reinforce this policy.

"We are pleased Stanley will be completed and add to Mosman's existing production.

“We are also encouraged with this successful validation of the investment decision and the strategic alliance with Baja."

In late afternoon trading. Mosman shares were 3.7% higher at 0.7p, easing back from an intraday peak of 0.88p.

 -- Adds share price --

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