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Welch Permian Basin Project Acquisition - W Texas
Welch Permian Basin Project Acquisition - W Texas.
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[{"type":"text","content":"\n \nRNS Number : 3006Q Mosman Oil and Gas Limited 11 September 2017 \n\n \n11 September 2017\n \n \nMosman Oil and Gas Limited\n(\"Mosman\" or the \"Company\")\n \n \nWelch Permian Basin Project Acquisition - West Texas\n \nMosman Oil and Gas Limited (AIM:MSMN) the oil exploration, development and production company, announces it has today executed a contract to acquire several oil and gas leases that comprise the Welch Permian Basin Project (\"Welch\" or \"Project\") located in Dawson County, West Texas for a consideration of USD$310,000, which will be funded from existing cash reserves. \n \nMosman's strategic objective continues to be that of identifying, acquiring and operating projects with cash flow and development upside, whilst continuing to add value to our existing exploration permits with further technical work.\n \nThe 34 bopd Welch Project exactly fits this criteria, with near term upside from low cost workovers and medium term development potential. \n \nWelch Permian Basin Project Overview\n \nThe Project is located in the Permian Basin, in and around the Welch township in Dawson County, West Texas, approximately 550 km west of Dallas. It consists of 653 acres of leases (held by production) with 10 producing wells, 7 injector wells, and 10 shut-in wells. The acquisition includes production equipment and facilities.\n \nThe Project is a small part of the larger Welch Oil Field, which was discovered in 1941 and has produced in total over 170 million barrels. Oxy (OXY USA Wtp LP) is the Operator of the Welch West and Welch South unit, and is having considerable success with drilling, fraccing and producing horizontal wells in the area. Devon Energy (Devon Energy Production Co. LP) is the Operator of the Welch North Unit and has also been very successful with horizontal wells. \n \nAfter waterflood commenced in 1997, the Project produced at rates of between 100-200 bopd until 2009, and then gradually declined. The average sales volume from the Project over the last 13 months has been 34 bopd (gross). There is no formal resource estimate available for these leases. \n \nWalsh Petroleum, Inc. (one of the previous owners of the Project) had developed plans for three horizontal wells on the Welch leases based on adjacent acreage analogues that c...