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Arkoma: 27% WI with option to increase to 33.3%
Arkoma: 27% WI with option to increase to 33.3%.
About this update from Quantum Helium Limited
[{"type":"text","content":"\n \nRNS Number : 6522V Mosman Oil and Gas Limited 25 July 2018 \n\n25 July 2018\n \nMosman Oil and Gas Limited\n(\"Mosman\" or the \"Company\")\n \nArkoma Stacked Pay Project: \n27% Working Interest with option to increase to 33.3% \n \nMosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, provides the following update in respect to the Arkoma Stacked Pay Project in Oklahoma.\n \nThe development potential is considered to be large as the area has potential for additional wells to be drilled to produce from multiple zones. As reported, the operator installed electric submersible pumps (\"ESPs\") in two wells to produce simultaneously from several zones. This was initially disrupted by weather events, and in July water injection issues. Following upgrade work to water injection facilities, these wells will be gradually brought on production. Mosman further reported that it may take some time to establish steady flow rates. \n \nMosman is not yet satisfied that steady flow rates have been established and accordingly has sought and secured an extension of the exercise date of the second option (\"Option\") that would increase the working interest from 27% to 33% of the Inland assets. Inland has agreed to amend the Option expiry date until 30 September 2018, to allow time for at least 30 days of steady production, and also for the Arkoma Joint Venture parties to meet and discuss, among other matters:\n· Field performance including July production results which are not yet available\n· Production optimisation\n· Operator arrangements going forward including a possible operator role for Mosman\n· Field development \n· Budgets\n \nMosman highlights that it is confident in the project, but until steady flow rates can be demonstrated over a period of time the decision to invest further funds must be cautiously approached, and considered in the context of alternative investments such as Welch horizontal wells and the development wells available through the Baja Strategic Alliance, as well as increasing production and strong oil prices providing strong cash flow.\n \nJohn W Barr, Chairman, said: \"We...