Good progress at Strawn and Arkoma projects, says Mosman Oil & Gas

Mosman Oil and Gas, the oil exploration, development and production company said it and its strategic partner Blackstone Oil and Gas were encouraged by the recent progress made on their joint US projects.

Both parties met in the US to review the ongoing work programmes at the Strawn Project and the Arkoma Stacked Pay Project, of which Mosman enjoyed a 50% and 10% interest in, respectively.

Mosman said its immediate focus was to gather information to update the Arkoma project's geological model, which once completed would facilitate a decision - to be made in October - in respect of the option held by the company to increase its ownership percentage from 10% to 30%, alongside a second option to increase ownership to 55% in 2018.

As part of the acquisition arrangements, Inland operating company remained operator of the Arkoma project and would pay for all the expenditure capital, the company said in a statement.

The AIM-listed company also said it had completed initial repair and maintenance work at the Texas based strawn project, as well as the first phase of the workover programme and that the work completed thus far was under budget.

Production rates there averaged approximately 18 to 20 bopd, although production rates could not yet be established due to the tentativeness of production rates, said the board.

A range of opportunities were being considered to further increase production rates, as the company reported previously.

As part of the growth strategy, Mosman announced that its strategic objective remained to identify opportunities which would provide operating cash flow and have further development upside, in conjunction with adding value to their existing exploration permits.