Mosman Oil and Gas 'cautiously' approaches further investment in Arkoma project
Mosman Oil and Gas Limited (DI)
0.04p
16:55 14/11/24
Mosman Oil and Gas remain confident that its Arkoma project will bear fruit, but told investors on Tuesday that until steady flow rates can be demonstrated over a period of time, the decision to invest further funds into the asset will be "cautiously approached".
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Two of the firm's directors recently travelled to Dallas to meet with Inland Operating, Arkoma's operator, and the asset's other owner Blackstone Oil and Gas to receive an update on the well's production data.
Inland recommended work-overs on three wells to increase oil and gas production, two of which are currently producing, while the other is shut in.
The operator and the AIM-listed firm noted that they both agree that wells' production of 25-34 barrels of oil per day was not yet optimised.
Mosman's chairman John Barr, said: "We remain cautiously upbeat about Arkoma, but as a board, we are disappointed that the wells are not yet optimised."
"We continue to monitor each individual project and make decisions based on the best and most complete information available."
As of 1350 BST, Mosman shares had tumbled 13.33% to 0.52p.