(Alliance News) - Mosman Oil & Gas Ltd on Friday said its Cinnabar-1 well in Texas was completed and perforated, as the pipeline from the well to the production facility is currently being installed.
The oil exploration, development, and production company with projects in the US and Australia said the well was completed on December 28, and was flow tested by Streamline Well Testing Inc on January 3 and January 4.
The company reported an average flow over 24 hours of around 120 barrels of oil per day and 180,000 cubic feet of gas per day, resulting in around 150 barrels of oil equivalent per day.
Mosman said long-term stable flow rates of oil and gas will be determined after the well is connected to its production facilities, the pipeline to which is currently being installed.
The company said the well has so far produced over 1,000 barrels of oil, which is being stored in temporary tanks,a s the company makes arrangements for it to be transported and sold.
Chair John Barr said: "These initial flow rates are very positive. We continue to move forward to full scale production and sales of both oil and gas at Cinnabar."
"The board is very pleased that the investment in the Cinnabar lease is delivering such encouraging results." he said.
Mosman owns a 75% working interest in the well, as well as the 350-acre lease on the site. Mosman's subsidiary Mosman Operating LLC operates the site.
The company said planning has begun for workovers of existing wells and the drilling of new development wells.
Mosman shares were up 4.4% trading at 0.07 pence per share on Friday morning in London.
By Harvey Dorset, Alliance News reporter
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Mosman Oil Gas (MSMN)