Mosman Oil and Gas Ltd reported a decline in its net production for the fiscal year ending June 30, 2023, having produced 31,067 barrels of oil equivalent (boe), down from 37,915 boe in the previous year.
The drop in production was primarily attributed to a halt at the Falcon site due to water ingress.
Though Mosman still sees potential at Falcon, the current environment of lower gas prices has led the company to reconsider the viability of a workover at the site.
Given the economic landscape, Mosman is evaluating its investment alternatives, with Falcon's workover not being a top priority, according to comments made by chairman John W Barr.
He said: "The company continues to develop and maintain its portfolio of projects, with a clear focus on its strategic plan to maximise the opportunity for further production growth and increasing cashflow.
“Whilst we are disappointed with the outcome at Falcon, the resolution of sand issues at Stanley and currently happening workovers at Cinnabar may deliver a more sustainable growth in production."