Mosman Oil And Gas Limited (LON:MSMN) updated investors on the Arkoma project in Oklahoma where operations are presently advancing to increase oil production.
The operator is presently progressing a programme to instal high-volume Electrical Submersible Pumps (ESPs) as well as infrastructure upgrades to accommodate the additional volumes of associated water production.
READ: Mosman Oil And Gas reports “good progress” with Australia exploration assets
According to the schedule, pumps will be installed into two wells by the end of May, and production rates are expected to build by the end of July.
Mosman, meanwhile, revealed that it has agreed an extension to the deadline for its second option, which would allow it to decide to increase its stake in the project up until July 31. The extension agreement means the company’s stake could increase to a maximum of 33.3%, in return for US$231,022.
"This latter option exercise date will allow Mosman to make an informed decision based on a better understanding of the project's oil production rates following the installation and operation of ESPs, while also being able to take into account market conditions and the prevailing oil price at the time,” said John Barr, Mosman chairman.
He added: "Mosman continues to pursue its stated strategy of investing in opportunities like Arkoma which will provide operating cash flow and have further development upside.
“The agreement with our partners on a later option exercise date will allow the board to obtain vital operational data before making its decision on exercising the second option."