Production rates at the Welch project, in the Permian Basin in Texas, continue to increase.
Well workovers in June boosted average gross production before royalties to around 44 barrels of oil per day, the company reported in September.
Moreover, the restart of the Drennan-8 well in early August saw production average 50 bopd.
Elsewhere, the Stanley-1 well, also in Texas, has been completed and is currently flowing oil into tanks – Mosman said the well is expected produce 150 bopd gross, which would give the company 25 bopd for its 16.5% stake.
Analysis of well data has indicated multiple zones that may also warrant additional production wells.
Talks with partners are scheduled in Texas next week.
Mosman has a strategic alliance with Baja Oil & Gas, a privately-owned company, which has a substantial existing inventory of projects.
This will see Mosman participate in the evaluation of future projects, starting with Stanley.
Output numbers should continue to rise with the increased production identified at Welch, the recent successful drilling at Stanley-1, a likely follow-up at Stanley; and the potential for horizontal well/s at Welch.
Cash was A$1.3mln of cash at 30 June.
In Australia, meanwhile, Mosman also noted that Synterra Technologies had provided initial results from stage two seismic reprocessing and interpretation.
The salt tectonic structuring seen in EP 145, is also present in the area where Australian oil firm Santos has announced it intends to drill the large Dukas prospect in the next six months.
Mosman is working with Synterra to determine the future work program at EP 145, which may include additional seismic to fill in the data gaps.
The idea eventually is to find a farm-in partner.
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.”
Stable cash generation the focus
SP Angel says the September update highlighted the increased focus on the development of a stable cash generative base from which to grow.
“The next key observation point will be the Stanley (Livingston Oilfield, Polk County, Texas) which could produce up to 150bpd.”
“The follow-up testing an interpretation will elucidate how much of the 150bpd can be achieved, and for how long.”
SP Angel’s target price is 1.63p, compared to a market price of 0.6p that values Mosman at £2.7mln.