Mosman Oil and Gas Ltd (AIM:MSMN) told investors that it has seen steady increases in gross production in its first quarter, while net production amounted to 6,958 barrels oil equivalent per day for the month of September.
The company highlighted “strong production” at the Stanley and Winters wells, whilst noting the Falcon well remains ‘shut-in’ pending review resulting in lower volumes.
Several recent well workovers increased both oil and gas volumes at Stanley, helping the operations at Stanley and Winters reach 193 barrels of oil per day of oil and 300 barrels oil equivalent per day of gas over a recent five-day period.
It noted that the priority for the quarter was increasing production at Stanley and drilling the new well at the Cinnabar project.
"Mosman is pleased to report a solid quarter of production, particularly factoring in the current halt in production at Falcon,” said Mosman chair John Barr, in a statement.
"We continue to make steady progress, with further development potential in existing leases. Notably, the recent workovers at Stanley and the expected results from the Cinnabar-1 well also provide optimism that the December quarter will be even stronger," he added.
Mosman said later that the Cinnabar well in Tyler County, Texas had completed drilling to a depth of 9,900 feet.
The next steps are to run wireline logs followed by run and cement production casing and then proceed to put the well on production, said the statement.
"Flow tests are not required as the production capability is already demonstrated at the existing production wells in the lease area.
"Based on nearby well history, the anticipated production rate estimates remain at circa 120 boepd (gross) although obviously actual production rates will not be known until hydrocarbons are flowed to surface."
-- adds Cinnabar detail -