Mosman Oil and Gas finalises second acquisition of the quarter

West Australian firm Mosman Oil and Gas announced on Friday it had completed a deal for its second acquisition in the quarter, this time for the Welch Permian Basin project in Texas.

Mosman said it intended to implement a strategy aimed at increasing production from current levels, initially focussing on well work overs with horizontal drilling likely to follow shortly after.

The AIM-listed firm had reportedly selected several shut-in wells for workovers already, noting its approach to regenerating the site would be similar to that which it had undertaken at its Strawn project by reinvesting cash flow from production into well workovers that would increase production.

The company said production at the Strawn facility was limited throughout August due to issues with its main water injection pump, but stated the fault had been fixed and despite not making a single sale in the previous month it moved 170 barrels of crude earlier in the week.

Technical work to estimate resources at Arkoma, which Mosman holds a 10% interest of, was still underway.

As of 0950 BST, Mosman shares had dropped 2.67p to 1.46p.