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Mosman O&G says Stanley-1 well tests shows potential for higher flow rates once current gas constraints removed

The AIM-listed oil exploration, development and production company pointed out that the final stable flow was 1,271,000 cfd and 50 bbls per day of liquid hydrocarbons, which is equivalent to 274 boepd

Oil rig
Recent flow rates with the existing infrastructure were averaging 450,000 cfd and 10 bbls per day of liquid hydrocarbons, equivalent to 90 boepd

Mosman Oil And Gas Limited (LON:MSMN) said a test recently performed on the producing Stanley-1 well in the US clearly shows potential for higher flow rates once current gas constraints are removed.

The AIM-listed oil exploration, development and production company the test, carried out by the operator, Nadsoilco LLC, and independent third parties, was limited due to the size of the test separator and was not an absolute open hole test.

READ: Mosman Oil and Gas unveils plans to drill five new wells

The company said over several hours the well was flowed through increasingly larger choke sizes and the flow rate was allowed to stabilise at each stage.

The group pointed out that the final stable flow was 1,271,000 cfd and 50 bbls per day of liquid hydrocarbons, which is equivalent to 274 boepd.

By way of comparison, it added, recent flow rates with the existing infrastructure were averaging 450,000 cfd and 10 bbls per day of liquid hydrocarbons, equivalent to 90 boepd.

Mosman holds a 16.5% working interest in the project. 

The firm said the operator has advised that planning and negotiating with relevant parties to eliminate pipeline limitations and increase gas processing contract volumes is underway.

It added that the timing of increased production depends on reaching agreement with third parties and completing site work, and an update will be provided in due course.

Stanley-2 drilling in November

The Stanley-2 well drill is scheduled to commence drilling in November with results due in early December, with the well expected to be an oil producer with minor amounts of associated gas that can be handled by existing infrastructure.

It said additional development wells will then be drilled to develop the multiple oil zones identified in Stanley-1.

John W Barr, Mosman’s chairman, said:  "This Stanley-1 test shows the ability of the well to produce at much higher rates once the gas infrastructure limitations are resolved.

“We are also pleased to move rapidly to drill Stanley-2 and potentially get it on production, to be followed by additional wells.”

He added: “Stanley-1 continues to generate revenue from gas and oil sales, and the test clearly shows the potential for higher rates once the current gas constraints are removed."

In mid-morning trading, Mosman shares were 7.4% higher at 0.29p. 

Quick facts: Mosman Oil And Gas Ltd

Price: 0.235 GBX

AIM:MSMN
Market: AIM
Market Cap: £2.08 m
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Mosman Oil and Gas sees highest flow rate yet at Stanley project from third well

Mosman Oil and Gas Limited's (LON:MSMN) Andy Carroll speaks to Proactive London after announcing that the Stanley-3 well in Texas has been completed. He says the well struck a six-foot interval during completion operations with the recovered fluid 100% oil. Carroll adds they'll be looking...

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