Mosman Oil And Gas Limited (LON:MSMN) told investors that the Stanley-1 well is nearing an important crossover point where it can be better optimised for oil production, meanwhile, the follow-up Stanley-2 well is due to spud next month.
The AIM-quoted oiler, in one of two stock market updates issued this morning, said that Stanley-1 is believed to be depleting its “small gas cap” and, once the well’s gas flow no longer needs to be restricted, it will be opened up further.
Accordingly, the company also noted that a decision to potentially develop gas infrastructure has now been dropped.
"Stanley-1 continues to generate revenue from gas and oil sales, however, the hope is that the oil will become the dominant revenue stream shortly,” said John Barr, Mosman chairman.
“The board is keen to move forward to Stanley-2 well being drilled soon."
Texas wells hit by heavy weather
Mosman, separately, reported that operations at the Welch Permian Basin project and the Strawn project have been impacted by recent significant rainfall.
Several wells had to be temporarily shut-in, and, certain regular repair works have been delayed as a result of the weather. At the same time, due to impassable roads, some crude collections have been delayed.
It noted that these factors will result in a slightly lower average production rate, though it said the costs attached to shut-in wells are minimal.
Barr added: “The rainfall has caused some disruption, but we are not aware of any damage to production facilities, and therefore once the rain abates normal production should be quickly restored."
By early afternoon deals, Mosman shares were down 2.52% at 0.49p.