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Mosman makes further progress with its US assets
Oil exploration, development and production company Mosman Oil and Gas announced continued progress in respect to its US assets on Friday.
The AIM-traded firm said that, in accordance with the recent RNS regarding Arkoma, relevant payments had been made by Mosman and Blackstone Oil and Gas, and Mosman's interest in the Arkoma project had therefore increased to 27%.
It said the operator would now proceed with installing high-volume electrical submersible pumps and infrastructure upgrades to accommodate the expected increase in oil and water production volumes.
The parties had now commenced discussions in respect of the existing second option, whereby Mosman could acquire up to an aggregate 55% interest in Arkoma by 27 March, with further announcements to be made on the status of the discussions as and when appropriate.
"We have achieved our initial objective in respect to increasing our interest in the attractive Arkoma stacked pay producing asset to 27% based on due diligence, sound data and technical analysis," said chairman John W Barr.
"We have also funded operational upgrades at Arkoma that are expected to lead to increased oil production and cash flow."
Barr said the strategy of acquiring oil production assets when oil prices were low was proving to be sound, given recent oil price increases.
"We are benefitting from the decisions taken and the excellent technical work done to increase oil production and look forward to building further our production base and cash flow in the US."