Mosman Oil and Gas has confirmed that the pipeline connecting the recently drilled Cinnabar-1 well to the existing production facility in Texas has been completed. Mosman owns a c.75% working interest in the well and the 350-acre lease. Mosman Operating LLC, a 100% owned subsidiary of Mosman, is the Operator of the lease.
The Cinnabar-1 well has been producing since 29 December 2022 with average oil production of 128 barrels of oil per day (bopd). Regular oil sales have now commenced utilising road tankers. In addition to the oil production, the gas was tested and measured at 180 Mcfd (c. 30 boepd). The gas will be used to gas lift oil from the existing G-1 well and also sold.
John W Barr, Chairman, said:
'I am pleased to report solid progress at Cinnabar. The work to increase overall production is progressing well and in the near term there is also potential upside from workovers of the two older production wells, which is why gas lifting at G-1 has been prioritised.
'We have already commissioned an update to the Reserve Report, which is an important step in understanding and communicating the size and value of Cinnabar, and in planning the full development of the lease. The updated report is expected to be completed in the next thirty days.'
Background
Mosman acquired working interest in the 348.83 acre Cinnabar Lease which includes the Challenger Project located between Mosman's Stanley and Champion projects in East Texas.
There are two wells drilled on the Lease which have previously produced significant quantities of oil but are now shut in. The Operator maintains the Lease as 'Held by Production' (HBP) by periodically opening one of the wells to produce a few barrels of oil.
In 2021 Mosman engaged a third party group to review Cinnabar including potential revised drill locations. As a result of this, the decision was made to proceed and drill the Cinnabar-1 well.
Source: Mosman Oil & Gas
