Mosman Oil & Gas To Install Pumps And Acquire Third Of Arkoma Project

LONDON (Alliance News) - Mosman Oil & Gas Ltd said on Tuesday that it is underway to install high-volume electrical submersible pumps in two wells in Oklahoma to deal with the expected increase in production volumes of water.

The oil exploration company said it scheduled to place pumps by the end of May and plans to reach full production rates by the end of July.

Mosman said it was in talks with its partners Inland Operating Co Inc and Blackstone Oil & Gas Ltd whether it can increase it interest in Arkoma Stacked Pay project. The company's holding was 27% after it funded due diligence, sound data and technical analysis.

Mosman intended to increase its stake in the project to 55% by March 27, but three parties agreed that each of them will be entitled to have a one third interest in the project.

Hence, Mosman now expects to to increase its interest in the Inland assets to 33% for a cost of USD231,022 by the end of July.

Mosman Chairman John Barr said: "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."

The stock was down 12% at 0.811 pence per share on Tuesday.