Mosman study indicates 'attractive economics' at Texas well project

Mosman Oil & Gas informed investors that a pre-feasibility study had identified “attractive economics” at its Welch horizontal well in Texas.

The study has been completed at the well where anticipated flow rates are 60-120 bopd per well, based on nearby well results, allowing the company to move forward with a feasibility study and steps to obtain the required approvals to develop the well.

AIM-listed Mosman has also commissioned an independent reserves report, set to be delivered by the end of April 2018.

John W Barr, chairman of Mosman, said: “Mosman is very pleased with the results of the PFS at Welch and has instructed the commencement of the feasibility study. The Welch project provides both a strong revenue stream and the foundation for growth.”

The first horizontal well at the site could be drilled and brought on production in the third or fourth quarter of 2018, subject to the completion of conditions such as financing and permitting, according to Mosman.

“The horizontal well development is being systematically progressed and we expect to have several financing alternatives that will be finalised before the final development decision is made by the Board,” said Barr.

As of 0831 GMT, Mosman Oil and Gas’ shares were unchanged at 1.08p.