(Alliance News) - Mosman Oil & Gas Ltd on Monday said its Cinnabar well now makes the biggest contribution to total output, following its completion in December.
The oil exploration, development and production company with projects in the US and Australia said its 75%-owned Cinnabar-1 well at the Cinnabar project in east Texas is producing 120 barrels of oil per day.
Mosman said it has delivered a material increase in production as a result, which will be reflected in its next quarterly report.
Mosman said the well is still producing at about the same gross rate as its initial flow test of 120 barrels a day and 180 million cubic feet per day of gas - a total of 150 barrels of oil equivalent per day.
The company noted that Cinnabar production is 90 barrels of oil per day, net to Mosman, which holds a 75% working interest.
The pipeline from Cinnabar-1 to its production infrastructure has been installed, and its gas production infrastructure is currently being upgraded, Mosman said.
Net production in the financial second quarter to December 31 for the rest of Mosman's developed projects was 6,212 barrels of oil equivalent, down 11% from 6,958 boe.
Mosman said the Stanley project accounted for 79% of net production at 4,897 boe, up 54% from 3,175 boe in the first quarter, while production at its Winters project fell to 800 boe, from 2,717 boe in the previous quarter.
Chair John Barr said: "Cinnabar is now the project that makes the biggest production contribution to Mosman. The delivery of this result is a step change in production and revenue. There is significant potential at Cinnabar and we will continue to build on this strong foundation."
Mosman shares were down 4.4% trading at 0.055 pence per share on Monday afternoon in London.
By Harvey Dorset, Alliance News reporter
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Mosman Oil Gas (MSMN)