The AIM-listed exploration, development, and production company said that all of its US projects are now generating increasing cash flow due to production improvements, lower costs, and higher oil prices.
Mosman shares were up 67% at 1.50pence per share on Tuesday morning.
At the Welch Permian Basin project in Texas, gross oil sales for the fourth months to January were 3,558 barrels of oil, delivering positive cash flow.
At the Welch Permian Basin project in Texas, gross oil sales for the fourth months to January were 3,558 barrels of oil, delivering positive cash flow.
The first phase of workovers has established production of up to 40 barrels of oil per day, which is periodically reduced by operational matters, such as a temporary shut-in for a few days in January to avoid damage in freezing weather conditions and typical minor matters, such as pump and rod repairs.
There is immediate development potential for the drilling of horizontal wells on the Welch Permian project, which are expected to increase both reserves and production, Mosman said. The benefit of horizontal wells has been demonstrated by nearby horizontal wells, which have achieved good results with initial rates in excess of 60 bopd. As a result, Mosman has commissioned a pre-feasibility study to further define the project for an investment decision later in 2018.
At the Arkoma Stacked Pay project in Oklahoma, Mosman commissioned and received an independent geophysical report to analyse 3D seismic data and to generate maps of the key reservoir horizons, which generally confirm the vendor's mapping.
Mosman has now achieved oil and gas production from four of the stacked pay zones at Arkoma: the Wilcox, Viola, Union Valley, and Cromwell, it noted. The Caney and Woodford shale potential, which is being drilled to the south in Hughes County, is a large resource that will be tested in due course. The initial oil and gas production rates from the Union Valley zone indicate that it alone may be sufficient for economic field development at Arkoma.
At Strawn in Texas, workovers established initial flow rates up to 30 bopd, however these flow rates were not sustained. Oil sales from October to January were 1,199 barrels, delivering positive cash flow.
"We have achieved cash flow and acquired a platform for growth. Encouragingly, 2018 has started positively with increasing cash flow. The strategy of acquiring oil production assets when oil prices were low is proving to be sound given recent increases in both oil production and the oil price," Mosman Chairman John Barr said.
There is immediate development potential for the drilling of horizontal wells on the Welch Permian project, which are expected to increase both reserves and production, Mosman said. The benefit of horizontal wells has been demonstrated by nearby horizontal wells, which have achieved good results with initial rates in excess of 60 bopd. As a result, Mosman has commissioned a pre-feasibility study to further define the project for an investment decision later in 2018.
At the Arkoma Stacked Pay project in Oklahoma, Mosman commissioned and received an independent geophysical report to analyse 3D seismic data and to generate maps of the key reservoir horizons, which generally confirm the vendor's mapping.
Mosman has now achieved oil and gas production from four of the stacked pay zones at Arkoma: the Wilcox, Viola, Union Valley, and Cromwell, it noted. The Caney and Woodford shale potential, which is being drilled to the south in Hughes County, is a large resource that will be tested in due course. The initial oil and gas production rates from the Union Valley zone indicate that it alone may be sufficient for economic field development at Arkoma.
At Strawn in Texas, workovers established initial flow rates up to 30 bopd, however these flow rates were not sustained. Oil sales from October to January were 1,199 barrels, delivering positive cash flow.
"We have achieved cash flow and acquired a platform for growth. Encouragingly, 2018 has started positively with increasing cash flow. The strategy of acquiring oil production assets when oil prices were low is proving to be sound given recent increases in both oil production and the oil price," Mosman Chairman John Barr said.
