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15 Jul 2019 07:00
15 July 2019
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Stanley-2 Initial Production
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, advises that the Stanley-2 well in Texas is now on production in accordance with the operator's planning.
Stanley-2 was drilled in March 2019 where the initial zone completed flowed mainly gas and consequently it was decided to recomplete the well in an oil zone. The well has now been recompleted and is flowing oil and has been placed on production, with in excess of 535 BBLs of oil from Stanley-2 already sold. The current oil producing zone is one of several further potential production zones.
Since being placed on production a heater-treater circuit has been added along with the additional injection of chemical de-emulsifier at the well head. Following these works, Mosman has been advised that average gross production from the last seven days was 63.5 BOPD. Mosman currently has an 18.5% working interest in this well.
The Stanley-2 well production rates are yet to fully settle. With this type of well the Operator monitors and periodically adjusts choke settings and production equipment to optimise oil production. Further announcements may be made in due course to provide updates in respect of any material changes to the production profile.
The next potential increase in production is anticipated to be the drilling and completion of Stanley-3 in August and Falcon-1 in this quarter. These wells will be financed from existing cash resources.
John W Barr, Chairman, said: "The flow rates from Stanley-2 are satisfying and fully justify the investment in the Stanley project. With oil production now established from multiple zones this demonstrates the potentially successful long-term nature of the Stanley Field overall.
"The Company continues to meet its objectives, and very much looks forward to the next wells being drilled shortly."
Competent Person's Statement
The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman, who has over 35 years of relevant experience in the oil industry. Mr. Carroll is a member of the Society of Petroleum Engineers.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside
information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Enquiries:
Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director jwbarr@mosmanoilandgas.com acarroll@mosmanoilandgas.com
| NOMAD and Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Soltan Tagiev +44 (0) 20 3470 0470
|
Gable Communications Limited Justine James / John Bick +44 (0) 20 7193 7463 mosman@gablecommunications.com | Joint Broker SVS Securities Plc Tom Curran / Ben Tadd +44 (0) 203 700 0078
|
Updates on the Company's activities are regularly posted on its website www.mosmanoilandgas.com
Technical Glossary
BBLs | barrel / barrels |
BOPD | barrels of oil per day |
TVD (True Vertical Depth) | the vertical distance from a point in the well to a point at the surface. |
MD (Measured Depth) | the length of the wellbore, as if determined by a measuring stick |
MCFGPD | thousand cubic feet of gas per day |
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