Mosman Oil and Gas mulls drilling horizontal wells at Texas prospect
Source - SMW
Mosman Oil and Gas said its Welch Permian Basin project in Texas had generated positive cash flow in the four months through January, as it mulls the commencement of a horizontal drilling campaign.
Gross oil sales for the asset totaled 3,558 barrels.
'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 the temporary shut-in for a few days in January to avoid damage in freezing weather conditions -- and typical minor matters such as pump or rod repairs,' the company said.
'The immediate development potential is the drilling of horizontal wells that are expected to increase both reserves and production.'
Mosman said it had commissioned a pre-feasibility study to further define the project for an investment decision later in 2018.
It has commissioned Moyes & Co. to produce a reserves report for the existing vertical wells and for the possible addition of three horizontal production wells.
At 8:12am: (LON:MSMN) Mosman Oil And Gas Ltd share price was +0.23p at 1.13p