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Mosman Oil and Gas extends deadline for increasing Arkoma stake

Mosman wants to see the steady production rates from two worked over wells before committing to a larger stake in the project

oil and gas operations
The new deadline is September 30

Mosman Oil And Gas Ltd (LON:MSMN) has extended the deadline for its option to increase its stake in the Arkoma field, where new well flow data is awaited to reflect the impact of work-over programmes.

Pumps have been previously been installed to two wells, though operations were initially delayed by weather and have subsequently also been impacted by water injection issues.

READ: Mosman Oil and Gas updates on Stanley-1 well drilling

Following further upgrade work, the wells are gradually being brought into production but Mosman expects it may take some time to establish steady flow rates.

As steady rates have yet to be seen the company agreed with its partner that the exercise date for its second option, to increase Mosman’s stake to 33% from 27%, is extended out to the end of September.

This will allow time for at least 30 days of steady production, Mosman said.

It means the partners can also meet to discuss a number of other matters including field performance, optimization, operatorship, field development planning and budgets.

"We remain upbeat about Arkoma, but as a board we must monitor each project and make decisions based on the best and most complete information available, and we look forward to getting the data we need to make that decision as part of future plans for the Arkoma field," said John Barr, Mosman chairman.

Quick facts: Mosman Oil and Gas Ltd

Price: 0.145 GBX

AIM:MSMN
Market: AIM
Market Cap: £3.84 m
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