Mosman Oil And Gas Ltd (LON:MSMN) described itself as “extremely pleased” as it confirmed first sales from the Stanley-1 well, onshore USA.
The company told investors that the first tanker load amounted to 190 barrels and some 7mln cubic feet of gas was also sold.
It noted that the tanker shipment doesn’t represent all production volumes, and, that inventory is now kept in storage tanks.
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"It is extremely pleasing that Stanley-1 has moved to a revenue-generating project in a short period of time since the original investment decision,” said John Barr, Mosman chairman.
“Following on from this, the Board is keen to move forward with the drilling of the Stanley-2 Well as quickly as possible.”
Additionally, it noted that output from Stanley-1 continues to be constrained - by the limitations of surface equipment - and, as the ratio of liquid hydrocarbons to gas has varied, the company said that a steady state has not been reached yet.
Mosman is now working towards the next well, Stanley-2, alongside partner Baja Oil & Gas.
Baja has completed the planning for Stanley-2, and, the company expects to receive a formal proposal for the well and will then have 15 days to decide whether or not it will participate in the well.
It is expected that drilling will start in November.
Separately, the company said it has now paid Baja the required funds for the acquisition of stakes in the Champion and Challenger projects, 60% and 16% respectively.