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Mosman Oil and Gas hails identification of 'significant' resources at Arkoma
(WebFG News) - Mosman Oil and Gas announced on Wednesday that its Arkoma Stack Pay project in Oklahoma is home to significant proved and probable resources, according to a report.
A report from Moyes & Co. had indicated a total proved and probable (2P) resource at the project is 336,000 barrels of oil equivalent (boe) gross, representing 64,000 boe net reserves to Mosman from the site.
The value of these reserves to Mosman, reduced by 10% to account for costs that will be incurred relating to the project, was put at $1.23m, with the valuation not taking into account the potential presence of additional resources at the site.
John W Barr, chairman of Mosman, said: "We have now funded the agreed operational upgrades and, in the coming months, will evaluate operational data following the installation and operation of Electric Submersible Pumps (ESPs) planned for May. We are also encouraged by an independent expert confirmation of the significant probable reserves and resources that attracted us to this project in the first place."
Mosman holds a 27% interest in the Arkoma Stack Pay project, with an option to acquire a further 6.33%.
"There is a lot of room for growth in this project. The reserves report at Arkoma, and subsequent field performance following the ESPs, are necessary data points ahead of the board making a decision of whether it will increase our 27% of Inland's working interest to 33.3% by 31 July 2018," said Barr.
As of 1213 BST, Mosman Oil and Gas' shares were up 3.57% at 0.72p.