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Mosman Oil and Gas reports increasing production

The oil and gas junior highlighted improvements across its portfolio, though given multiple opportunities, Mosman noted that capital decisions will need to be made in the coming weeks
oil and gas operations
Production improved at the Permian assets and the Stanley well

Mosman Oil And Gas Limited (LON:MSMN) told investors that production rates at the Welch project, in the Permian Basin, continue to increase.

The company, in a statement, said that following well workovers in June, the average gross production before royalties was reported to have increased to around 44 barrels of oil per day.

Moreover, the restart of the Drennan-8 well in early August saw production average 50 bopd.

READ: Mosman Oil and Gas hails Texas wells

Elsewhere, the Stanley-1 well in Texas has been completed and is currently flowing oil into tanks – Mosman said the well is expected to yield 150 bopd, which would give the company 25 bopd for its 16.5% stake.

It also highlighted that analysis of well data indicates multiple zones which may warrant additional production wells and future plans are due to be discussed with partners in Texas next week.

Mosman said: “The expectation is that the total USA production numbers will continue to improve driven by the increased production identified at the Welch Permian Basin Project, the recent successful drilling at Stanley-1, the potential of a follow up well at Stanley (which is anticipated to have similar costs and similar or higher production); and the potential horizontal well/s at Welch which at this time remains subject to a board decision on capital allocation and funding.”

The company noted that it had A$1.3mln of cash at the bank on June 30.

Australia exploration

Mosman also noted that Synterra Technologies had provided initial results from stage two seismic reprocessing and interpretation, confirming that the salt tectonic structuring can be seen in EP 145, as it can in the area where Santos has announced it intends to drill the large Dukas prospect in the next six months.

It said it is working with Synterra to determine the future work program at EP 145, which may include additional seismic to fill in the data gaps with the objective of determining a drilling location.

The idea would be to allow a full package of information to be available in order to attract a farm-in partner.

Capital decisions pending

John Barr, Mosman chairman, said: "The company's strategic objective has been clearly identified and The Board will continue to pursue that objective and implement its business plan.

“Mosman has acquired projects with production, revenue, and excellent development potential.

“We will be making important capital allocation decisions in the next few weeks as some projects are accelerated, and others deferred.”

“Next week, two Mosman executive directors have a series of meetings in Texas with participants in the company's production assets."

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Mosman Oil And Gas Timeline

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