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Mosman Oil and Gas marks reserves at Arkoma project

Mosman is "very encouraged" by the reserves report which will help inform its pending decision whether or not to increase its stake in Arkoma
oil and gas operations
The net 2P reserves were valued at US$1.24mln

Mosman Oil And Gas Ltd (LON:MSMN)  has released the findings of Moyes & Co, which has confirmed the Arkoma Stack Pay project’s reserves.

The project has been confirmed to have gross proved and probable (2P) reserves of 336,000 barrels oil equivalent, along with 2.4mln barrels of contingent resources.

Net to Mosman, the 2P reserves amount to 64,000 boe. The company values its net 2P reserves at US$1.23mln.

WATCH: Mosman Oil & Gas confirms reserves at Arkoma and Welch projects

Mosman will now use the reserves report and the field’s ongoing production record as it makes a decision over its option to potentially increase its stake in the project (it has until July 31 to increase its holding to 33.3% from 27%).

"Arkoma continues to meet the stated strategy of delivering operating cash flow and having development upside,” said John Barr, Mosman chairman.

"It is very encouraging to have Proved Reserves at this early stage of development.

“We have now funded the agreed operational upgrades and, in the coming months, will evaluate operational data following the installation and operation of Electric Submersible Pumps (ESPs) planned for May 2018.”

Barr added: "We are also encouraged by an independent expert confirmation of the significant Probable Reserves and Resources that attracted us to this project in the first place.

“There is a lot of room for growth in this project.”

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