The company said the project, located about 550 kilometres from Dallas, comprises ten existing production wells plus ten shut-in wells and seven injectors. It presently produces around 34 barrels of oil per day.
It highlighted that the deal fits the group’s acquisition strategy which seeks with cash flow as well as development upside.
Mosman plans to manage operating expenses and increase cash flow via low cost initiatives to increase production volumes – it said it has already identified shut-in wells for potential workover operations for the ‘shorter term’.
The company said the strategy for Welch will be similar to that adopted at the recently acquired Strawn project, where workovers significantly improved production.