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Mosman Oil and Gas completes Stanley-2 drilling

The well will be evaluated, and, then put into production
oil and gas operations
The well's target zones were encountered

Mosman Oil And Gas Ltd (LON:MSMN) told investors that it has completed the drilling of the Stanley-2 well, in Texas.

The well was drilled down to a depth of 5,000 feet, and, it encountered the targeted Eocene aged sands including the Yegua sands.

READ: Mosman Oil And Gas looks forward with confidence

Its next operations will include electric logging, and it will also run well casing. A period of evaluation will now start, ahead of work to bring the well into production.

The company noted that the purpose of the well was to penetrate several Eocene sand targets up-dip from Stanley-1, to optimise the oil production and recovery from these zones identified in 3D seismic data.

In last week’s financial results statement Mosman said: “Overall, the expectation for 2019 is for higher revenues and lower costs from the existing producing asset base coupled with further potential production upside from the re-completion at Stanley-1, and the drilling of Stanley 2 and from the potential drilling of other well targets already identified in our US portfolio.”

Stanley is one of four assets that contribute to Mosman’s net production in 2018 - the others are Welch and Strawn in Texas and Arkoma, in Oklahoma.

In a note to clients, analysts at SPAngel said: “News that the Company has completed drilling is positive, as it has been completed on time and without incident.

“The logging of the asset will be the crucial next step, as this will provide more information on the structure of the asset, and enhance the technical interpretation, which will be vital to understanding how to access the liquid zones preferentially.”

They added that, with the technical interpretation continuing, they reiterate their US$6.32mln, or 0.78p per share valuation on the company.

In afternoon trading, shares in Mosman O&G were 1.9% higher at 0.28p.

 -- Adds analysts comment, share price -- 

 

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