(Alliance News) - Mosman Oil & Gas Ltd on Monday said production fell in the third quarter as low production from its Cinnabar and Stanley wells dragged the figures downward.
The Sydney-based, Australia and US-focused oil and gas company said net production in the third quarter ended September 30 was 3,564 barrels of oil equivalent, down from 5,937 barrels the previous quarter.
Gross production fell to 10,774 barrels in the third quarter, from 15,332 previously.
The firm said the lower production figure was due to reduced production from its Cinnabar-1 and Stanley-5 wells.
The firm said it is optimising production at Cinnabar, while a jet pump has been installed at Stanley, which had previously halted production.
Net production at Cinnabar was 405 barrels during the quarter, down from 1,332 barrels, while Stanley's production fell to 2,170 barrels from 3,744 barrels previously.
Winters and Livingston grew to 487 barrels and 102 barrels from 311 and 70 barrels respectively. Arkoma production declined to 400 barrels from 480 the previous quarter.
The company said the average selling price during the quarter was USD81.47 per barrel of oil, up from USD73.02 the prior period, and USD2.22 per million British thermal units of gas, from USD1.70.
Chief Executive Andy Carrolll said: "Whilst there are significant oil reserves at Cinnabar, we need to do better with production rates and technical work continues to enable us to achieve this. We have successfully demonstrated the benefits of jet pumps at Stanley and are working to improve overall production for the December quarter."
Mosman shares fell 9.8% to 0.019 pence each on Monday morning in London.
By Harvey Dorset, Alliance News reporter
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Mosman Oil Gas (MSMN)