Mosman Oil and Gas is ploughing ahead with plans to build its US operations.
The firm has acquired three producing projects in 2017, demonstrating that “the company is moving forward effectively in achieving its objectives of building a significant production operation”.
Mosman today revealed its first US acquisition, Strawn, has already tripled production and is now cash flow positive.
Chairman John Barr, said: “Mosman continues to make progress in expanding its three US producing operations in Texas and Oklahoma in the active execution of our Business Plan. Encouragingly, Strawn production is now steady at 15 to 20 bopd and is cash flow positive net of lease operating expenses. A similar approach will be utilized at Welch where Mosman is also the operator.
“We continue to evaluate additional producing projects on strict criteria and, given our existing producing operations, we have been introduced to a number of new business opportunities in the Texas and Oklahoma region which would allow Mosman to benefit from expanding its existing activities into a regional hub that would have the potential to deliver operational, general and administrative synergies over time.”
Mosman’s technical director, Andy Carroll, is currently in the US and will in the course of the next week visit all three producing US projects in Texas and Oklahoma. His visit includes an meeting with an independent consultant to discuss work on Arkoma and also receive investment proposal regarding a new project;
He will review operations at Welch in a bid to increase production.
Finally, Mr Carrol will meet with the vendors in regards to the firm’s Arkoma play in order to attempt to facilitate completion of technical work that will provide an estimate of the resources. This will allow the company to make its next investment decision in respect of its options to acquire an increased stake.
He will also seek out new business opportunities.
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