Mosman Oil’s planned Stanley workover programme in the US represents another positive result for the group, according to house broker SP Angel.
Analysts said it should increase the value if Mosman monetises the asset in the healthy Texas M&A market, and can add value overall if the proceeds are used to upgrade the Cinnabar wells to fulfil their full potential.
Cinnabar can be potentially transformational for Mosman, said the broker, as it should be possible to drill several more wells at 40-acre spacing across the company’s acreage to boost its group production and cash flow.
SP Angel said: “Management has outlined a focused business strategy to selectively develop producing oil assets in the US and maximise the helium, hydrogen and hydrocarbon opportunity by bringing in funding partners to the exploration permits in Australia.”