Mosman scores 83% increase in production at Welch project

Oil exploration, development and production company Mosman Oil & Gas saw its shares rocket on Monday after production increased significantly at the Welch project in West Texas.

Between 1 July and 27 July production at Welch was 1,180 barrels, with 896 attributable to Mosman, representing production of approximately 44 barrels per day, an 83% increase over the previous six-month average at the site.

The company said the increase was attributable to workovers and repairs completed on three wells at the project in early July.

John Barr, chairman of Mosman, said: "We proceeded with the repairs as a result of obtaining funding from the recent placement and the repairs have resulted in an immediate effect on production. This is an encouraging evidence that Mosman continues to achieve its strategic objectives to build a strong production base."

Mosman has now asked its consultants Moyes & Co to consider any further wells that can be repaired in the near term, while the main development upside are horizontal wells that Moyes has estimated as potentially being able to produce 120 barrels of oil per day.

Mosman Oil & Gas’ shares were up 16.77% at 0.73p at 1534 BST.