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Mosman Oil & Gas Ltd on Monday said it produced and sold less oil in the quarter to September 30 than in the quarter before, as production at Falcon is currently halted.
Mosman operates oil projects in the US and Australia. The company's shares were trading 12% higher at 0.073 pence each in London on Monday around midday.
The company announced it sold oil for an average of $91.35 per barrel, down 16% from $109.24 in the quarter to June 30. Gross production dropped mildly to 24,287 barrels of oil equivalent from 24,496 barrels of oil a quarter ago. Net production fell 21% to 6,958 boe from 8,815 boe.
The reason for lower production is the halting of production at Falcon, which produced 3,828 boe gross and 2,871 boe net in the quarter to June 30.
Production had stopped in May and the firm has been trying to restore production ever since.
Chair John Barr said: ‘We continue to make steady progress, with further development potential in existing leases. Notably, the recent workovers at Stanley and the expected results from the Cinnabar-1 well also provide optimism that the December quarter will be even stronger.’
Cinnabar-1 is a Texas well in which Mosman holds a 75% interest. It started drilling in late September.
On Monday, the firm announced it successfully drilled the well at a depth of 9,900 feet. It continues to estimate a production rate of 120 gross barrels of oil equivalent per day.
‘This successful drilling again reinforces the investment case in South-Eastern Texas where Mosman has participated in multiple wells, and every one of these wells has been placed on production. Mosman looks forward to providing further updates in due course,’ said Chair Barr.
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