Mosman Oil and Gas Limited the hydrocarbon, helium and hydrogen exploration, development and production company, announces its production update for the three months ended 31 December 2023.
US Production (Various interests)
Mosman achieved net production of 2,725 boe (circa 30 boepd) versus net production of 3,564 boe (circa 39 boepd) in the prior September Quarter. The lower production rates were primarily due to changes in production infrastructure and managing sand produced with the oil at Stanley, which should facilitate higher production rates in 2024.
Net Production of 2,725 boe comprised of 2,220 barrels of oil and 2,929 MMBtu of gas. The average sale prices achieved during the period was US$76.22 per barrel for oil and US$2.37 per MMBtu for gas (September quarter was US$81.47 and US$2.22 respectively, and in each case after transport and processing costs but before royalties).
Production numbers in the Quarter are based on the current best available data or estimates (including field data if necessary) and are subject to adjustment upon receipt of final sales invoices from the purchasers of products.
Major Project Updates
Cinnabar (75% Working Interest)
Installation of artificial lift (pump jacks) have been selected as the preferred type of artificial lift which is expected to increase production rates.
Additional workovers are also being considered to test potential sands that appear attractive on wireline logs and sidewall cores. These workovers are planned to be funded from cashflow.
Stanley (34.85% to 38.5% Working Interest)
It was a busy quarter with recompletions, the repair of a key water disposal well and surface equipment modifications. An additional jet pump was installed at Stanley-5 in October 2023 and oil flow rates are good, but production has had to stop periodically to manage fine sand that is produced with the oil which blocks the screens. The sand extraction process has subsequently been changed to allow the sand to settle in tanks before separation and screening. Stanley-3 was successfully recompleted and produced strong gas flows, allowing gas sales. Adverse weather conditions caused some reduction in production rates in December due to freezing conditions and heavy rain affecting access roads (which has also been the case for some days in January).
Winters (23% Winters-2 Working Interest)
Winters-2 continues to produce both gas and oil.
Cash position
As at 31 December 2023, Mosman had cash at bank of circa AUD$0.6 million.
Andy Carroll, CEO, said: "This has been a busy period at Stanley with downhole operations and reconfiguration of surface equipment a priority, which should see higher production. Going forward, Cinnabar will be the priority area for the year ahead."
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this information is now considered to be in the public domain.
