Mosman Oil And Gas Ltd ( LON:MSMN) is now officially an oil producer after it confirmed the first sale of oil from its Strawn project in Texas.
At the end of last month (May), 496 barrels of oil was collected and sold from the project which it acquired a 50% stake in back in April.
The company said it still plans to increase production and cash flow at Strawn, with the free cash flow continuing to be re-invested back into the project.
Initial short term work has now been completed, including road improvements and pump jack repairs. On top of that, operational, health & safety and other site obligations have been identified which Mosman said it is working on to make further improvements.
The next phase at Strawn is to implement a workover programme which is scheduled to start next week. There are some 27 wells on the leases and each has been or is currently being reviewed with a strong emphasis on production increases, Mosman added.
ArkomaSticking with the US and, like Strawn, another recent addition to the Mosman portfolio is the Arkoma Stack Pay project in Oklahoma.
The AIM-listed company acquired a 10% interest (with the option over a further 45%) in the project only last month (May) but the first revenue from production here is expected to be credited to Mosman this month (June).
Importantly, operator Inland Operating Company has advised that work on several wells is progressing. A further update on this is expected in the next few weeks.
Mosman has commissioned an independent third party Reserves Report at Arkoma, which is scheduled to be completed later this month.
Amadeus BasinMosman’s other assets are over in Australia and New Zealand, although in terms of development they’re not as advanced as either Strawn or Arkoma.
The firm owns and operates two granted permits (EP 145 & 156) and one application (EPA 155) in the Amadeus Basin in Australia’s Northern Territory.
At EP 156, an airborne survey was recently carried out and the next step is to interpret this data.
Despite the fieldwork programme having been completed at EP 145 for some time now, the key consultant has been ill and the report is still in the process of being finalised.
A site visit at EPA 155 is scheduled for later this year, and the next step here is to obtain native title approval.
Petroleum CreekPetroleum Creek is located near Greymouth on the South Island and is one of two assets in New Zealand, although that will probably fall back to just the one in the near future.
A falling oil price has hampered the economics of this particular project and Mosman said planning continues for the three wells to be plugged and abandoned, likely before the end of this year.
MurchisonStill in NZ but about 100km further north of Petroleum Creek lies Murchison, which has a 13 trillion cubic feet (TCF) prospective resource identified.
Mosman is still in discussions with the New Zealand Petroleum and Minerals (NZPAM) about the timing of the planned work programme.
The company has said it is still actively looking to pursue farm-in investment to cover the cost of drilling |
