Mosman upbeat on recent US production

Oil and gas explorer, developer and producer Mosman said on Monday that its US production showed steady increases across its projects in its first quarter, except for the Falcon well, which was currently shut-in pending a review.

The AIM-traded firm said net attributable production for the three months ended 30 September was 6,958 barrels of oil equivalent, down from 8,815 barrels in the prior quarter.

It said the result reflected continued strong production at Stanley and Winters, adding that the loss of gas production at Falcon had been mitigated by higher-value oil production increases at Stanley.

At Stanley, Mosman said several recent workovers increased both oil and gas production, resulting in the recent five-day average gross production at Stanley and Winters combined achieving 193 barrels of oil and 628 million cubic feet of gas per day, or about 300 barrels equivalent per day, in aggregate.

That compared to a gross 218 barrels equivalent per day in the June quarter.

The board said the priority in the quarter had been increasing production at Stanley and drilling at Cinnabar, with priorities on all projects, including Falcon, set to be reviewed after results were received from Cinnabar.

Mosman said its net production of 6,958 barrels equivalent produced in the September quarter consisted of 2,973 barrels of oil and 23,113 million British thermal units of gas.

The average sale prices achieved during the period was $91.35 per barrel for oil and $6.99 per million British thermal units for gas, compared to a respective $109.24 and $5.81 in the June quarter.

“Mosman is pleased to report a solid quarter of production, particularly factoring in the current halt in production at Falcon,” said chairman John Barr.

“We continue to make steady progress, with further development potential in existing leases.

“Notably, the recent workovers at Stanley and the expected results from the Cinnabar-1 well also provide optimism that the December quarter will be even stronger.”

At 1336 BST, shares in Mosman Oil and Gas were up 10.77% at 0.07p.

Reporting by Josh White at Sharecast.com.