Mosman Oil And Gas Ltd (LON:MSMN) has told investors that production from the Stanley project is now “almost in line with expectations”.
Gross production for the month of November to date averages around 290 barrels of oil per day (bopd), up from 250 bopd at the start of the month.
The Stanley-3 well is contributing around 200 bopd, Stanley-2 adds about 50 bopd. Meanwhile, the Stanley-1 well has selected for gas lift, work for which is complete and now attentions are focused on maximising output from this well.
The new Stanley-4 well is planned for February 2020.
Elsewhere, at the Champion project, preparations are progressing for the Falcon-1 well – which may be drilled via an existing well location.
READ: Mosman lands key approval from Northern Territory
“Mosman expects to provide a further update on the timing and funding of the Falcon well in due course,” the company said in a statement.
Mosman and partner Baja Oil and Gas are “currently and actively” reviewing possible new project opportunities, using a similar evaluation model as used to select the Stanley project, and the company expects to update investors only once commercially sensitive talks are successfully completed.
It also noted last week’s news from Australia’s Northern Territory where the authorities agreed an extension to the licence deadlines, allowing the company to advance a possible partnering and move ahead for a planned work programme.
Presently, the company is awaiting clearance from a survey by the Aboriginal Areas Protection Authority (AAPA) to ensure no areas of cultural significance will be disturbed by proposed seismic activities.
More broadly, the company updated investors on its outlook:
It said:“Mosman's focus remains delivering on its strategic objective; to identify opportunities which will provide operating cash flow and have development upside, in conjunction with progressing exploration of existing exploration permits.
“The increase in production since 30 June 2019 and the planned wells represent a continuation of that objective.”