“We are encouraged that higher oil price with WTI over USD 70/bbl means the economics of existing and new wells has improved compared to the challenging prices in 2020,” John Barr said.
() said it is still committed to drilling new wells though its recent activity has focussed on the workover of existing wells to boost production and cashflows.
Several well workovers have been performed to optimise production at the Stanley project, where Mosman has well interests between 15% and 19%. Similar operations have been taking place at the 50%-owned Falcon-1 well a new zone has been recompleted to see whether it will yield higher production rates.
“Whilst it makes sense to optimise production, the need for ongoing workover operations has delayed our plans to drill new wells,” said John Barr, Mosman chief executive. “We are encouraged that higher oil price with WTI over USD 70/bbl means the economics of existing and new wells has improved compared to the challenging prices in 2020.”
At the Stanley project, the Stanley-1 well initially produced at a rate of 120 bopd and, as maintenance, it will shortly require sand control. The Stanley-2 well continues to yield 20-25 bopd and Stanley-3 is flowing 40 bopd, the company noted. A paraffin wax build up has been seen in the Stanley-3 well and this will soon be treated with hot oil to allow higher production rates.
Stanley-4 was recently recompleted in another zone, to allow gas and oil production once equipment is installed later this week.
Mosman noted gross production amounted to 14,557 bopd in the first quarter of 2020 at Stanley, and it intends to update investors with new production stats in due course once stable rates are available.
At the Falcon-1 well, the company highlighted that production continues to yield gas and oil with recent gross rates measuring around 95 boepd.
A workover conducted in May did not deliver better rates, further work has been undertaken to optimise the well including a recompletion in a new production zone. The company noted that the programme will provide additional data to update the project’s geological model.
Mosman also highlighted that it remained well-funded, with A$3.5mln cash in the bank as at 6 June 2021″