Mosman Oil and Gas Ltd (AIM:MSMN) has described its initial production rates from the Cinnabar-1 well as “very positive”, today highlighting that more than 1,000 barrels of crude have been produced since it was completed in late December.
The small-cap oil company, in a statement, said that the Cinnabar well was completed – perforating the targeted Upper Wilcox sands – and subsequent tests on 3 and 4 January yielded average production rates of 150 barrels oil equivalent per day (120 barrels of oil and 180,000 cubic feet of gas).
Mosman noted that produced oil is being stored in temporary tanks and arrangements are being made for the oil to be transported and sold.
It has also highlighted that it had already engaged independent consulting engineers to upgrade the project’s reserve report using information from the well.
Operationally, it is now planning for workovers to existing wells at the project along with a plan for drilling additional development wells.
"These initial flow rates are very positive,” said chair John Barr.
“We continue to move forward to full scale production and sales of both oil and gas at Cinnabar.
"The board is very pleased that the investment in the Cinnabar lease is delivering such encouraging results."
Mosman holds a 75% working interest in the Cinnabar well, which sits on a 350-acre lease in Tyler County, Texas.