Business
USA Update - Production Established...
USA Update - Production Established....
About this update from Quantum Helium Limited
[{"type":"text","content":"\n \nRNS Number : 6549E Mosman Oil and Gas Limited 13 February 2018 \n\n13 February 2018\n \nMosman Oil and Gas Limited\n(\"Mosman\" or the \"Company\")\n \nUSA Update\nProduction Established and Poised for Growth\n \nMosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, announces continued progress in respect to its USA assets, which are all generating increasing cash flow due to production improvements, lower costs and higher oil prices.\n \nWelch Permian Basin Project (Texas): 100% Working Interest and Operator\n \nThe property was acquired for both production income and development potential. Oil sales (gross) for the four month period from October to January were 3,558 barrels, delivering positive cash flow. \n \nThe first phase of workovers has established production of up to 40 bopd which is periodically reduced by operational matters such as the temporary shut-in for a few days in January to avoid damage in freezing weather conditions, and typical minor matters such as pump or rod repairs.\n \nThe immediate development potential is the drilling of horizontal wells that are expected to increase both Reserves and production. The benefit of horizontal wells has been demonstrated by nearby horizontal wells which have achieved good results with initial rates in excess of 60 bopd. As a result, Mosman has commissioned a pre-feasibility study to further define the project for an investment decision later in 2018. \n \nMosman has commissioned Moyes & Co. to produce a Reserves Report for the existing vertical wells and for the possible addition of three horizontal production wells.\n \nArkoma Stacked Pay Project (Oklahoma): 12% Working Interest with options to increase to 55%\n \nMosman commissioned and received an independent geophysical report to analyse the 3D seismic data and to generate maps of the key reservoir horizons, which generally confirm the vendor's mapping. Moyes & Co. has received the independent report and mapping that will provide the foundation for Moyes & Co.'s assessment of Reserves and Resources.\n \nLast week in Dallas the Directors met with Moyes & Co., representatives of the Arkoma vendors and Mosman's strategic partner, Blackstone Oil and Gas. Discussions included the po...