Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Mosman Oil and Gas Limited starts looking horizontally at Welch project

The AIM-quoted oil firm expects the horizontal study will be complete during the first quarter of 2018.
oil barrels in stack
Oil sales amounted to 689 barrels

Mosman Oil And Gas Limited (LON:MSMN)  told investors it has now started a study to determine the economics of drilling horizontal wells at the Welch project, where work in recent months has so far focussed on workovers and production optimisation.

Seven wells have been worked over since the programme began in October, and for the month of November oil sales amounted to 689 barrels (in October the figure was 843).

The AIM-quoted oil firm expects the study will be complete during the first quarter of 2018.

Additionally, at the 50% owned Strawn project the company has now completed a second phase of workovers, but, production rates are not at a desired level so options are now being considered – either further investments may be made or instead cost conservation could be prioritised.

Elsewhere, Mosman is continuing discussions over the potential funding of the presently 10% owned Arkoma project, in Oklahoma, ahead of a decision to exercise the company’s option to a 45% in the project.

Mosman sees potential for Arkoma to add both production and oil reserves, but, it will only exercise its option if it can be fully satisfied  by the results of a recent assessment of the project.

"We are pleased to achieve progress on our stated goals in 2017,” said John Barr, Mosman chairman.

“The strategy of acquiring oil production when oil prices were low appears to be sound with the recent increase in oil price.

“Rejuvenating the two older oil fields continues to be work in progress, and we are continuing to gather information and adjusting plans accordingly.”

Barr added: "The strategy of taking an option at Arkoma remains sound.

“The multi-reservoir resource and production rates required time to be determined and the value is linked to those matters and the change in oil price."

View full MSMN profile View Profile

Mosman Oil And Gas Timeline

Related Articles

coal trucks
March 14 2018
Polish group Cobant is the latest partner and will work with AEG to develop a new "Super Fuel" that combines CoalSwitch and reclaimed coal
oil and gas operations
July 03 2018
Analyst Ashley Kelty highlighted what could be characterised as favourable environment and opportunity for Rose Petroleum
picture of gas flare
February 13 2018
A new gas generator also came on stream recently and has started to produce the first power from the project

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use