Mosman Oil and Gas Ltd (AIM:MSMN) has told investors that work to connect the recently drilled Cinnabar-1 well in Texas to a production facility via pipeline has now been completed.
The company, in a statement, also noted that Cinnarbar-1 has been producing at a rate of 128 barrels of oil per day and regular oil sales have already taken place via road tankers.
Additionally, it noted that the Cinnabar-1 well was producing around 30 barrels oil equivalent of gas which was being used to lift oil from the existing G-1 well, with that resulting production also being sold.
"I am pleased to report solid progress at Cinnabar,” said Mosman chair John Barr. “The work to increase overall production is progressing well and in the near term there is also potential upside from workovers of the two older production wells, which is why gas lifting at G-1 has been prioritised.”
Barr added: "We have already commissioned an update to the Reserve Report, which is an important step in understanding and communicating the size and value of Cinnabar, and in planning the full development of the lease.
“The updated report is expected to be completed in the next thirty days."