Baja Oil and Gas LLC, Mosman’s partner, advised that the well’s production rate is temporarily constrained by existing surface equipment limitations.
It is presently flowing at a rate of 67 barrels of oil equivalent per day, and, following infrastructure upgrades, it is expected to rise to around 230 boepd.
The company anticipates that the equipment upgrades will take place over the next several weeks.
Mosman noted that the initial production is high yield natural gas and liquid hydrocarbons, and, Baja expects that the product mix will change from natural gas with substantial liquid hydrocarbons to oil with substantial associated natural gas.
John Barr, Mosman chairman, said: “Mosman is extremely pleased with the short time it has taken from spudding the well to sales. We anticipate that surface equipment upgrades will increase production.
“Planning has now commenced for a follow up well, Stanley-2."
“Today’s news that the company’s Stanley-1 well has started to flow is a significant positive and, given the revised composition, once the testing programme is complete, boundary conditions understood, we will know to what extent to which the indicated 230boepd can be delivered and for how long,” said City broker SP Angel.
“We believe that these results continue to underline the Company’s efforts to focus on cash-generating projects.”
Shares dipped 3.3% to 0.56p on Monday afternoon.
--Updates for share price and broker comment--