Mosman Oil and Gas Ltd (AIM:MSMN) has told investors that the Arco-Fee G-1 (G1) well at Cinnabar, one of the field’s prior wells, has now flowed oil again following a well workover programme.
The company, in a statement, said that a workover involving gas injection has yielded results, with the well starting to flow and it will now be optimised by the addition of gas compression which will support pressure in the well.
Initially, the equivalent of five barrels of oil per day flowed from the well following the workover.
An upcoming programme will see the installation of a compression facility at the field, and, that will be funded from the company’s existing cash reserves and the proceeds from a recent placing.
Cinnabar is located in Tyler County Texas and was discovered in 1988. Its first well, Arco-Fee G1, produced from four reservoir zones and was followed up by the G2 well which similarly produced from multiple pay zones.
G1 previously produced some 149,000 barrels of oil and 341mln cubic feet of gas, whilst G2 had 138,000 barrels of oil production and flowed 173mln cubic feet of gas.
Mosman-drilled Cinnabar-1 was the field’s third well and it is currently on-production at the field.