In a production update, the AIM-listed oil exploration, development and production company, which operates in the USA and Australia, said net attributable production was 6,476 barrels of oil equivalent (boe), an increase of 46.6% on the 4,417 boe in the six months ended 30 June 2018.
It added that net sales attributable to Mosman were A$614,120, an increase of 14.9% on the previous six month’s A$534,500.
Mosman pointed out that the one new well which came on stream in the period, Stanley-1, continues to produce mainly gas with some oil.
The group said poor weather resulted in lower production than expected in the period, mainly due to wet road conditions affecting access to well sites.
For example, it added, production at Welch was limited by some wells not producing due to broken rods, which is a routine workover.
The company said the drilling of the Stanley-2 well has been delayed as the road needs to be in dry condition for the heavy rig loads.
Once the roads dry out, it added, the workovers at Welch and the drilling of Stanley-2 can proceed, with both these activities expected to further increase production.
Production growth expected to continue
John W Barr, the firm’s chairman, said: "Mosman continues to grow its production and sales consistent with its business plan, despite the challenges of the severe weather delays, oil price falls and operational issues during the period.
"Production growth is expected to continue as workovers are completed and new wells drilled. The horizontal wells at Welch are subject to funding, where options are being reviewed, including a farm out. Planning continues for additional wells."
In a note to clients, analysts at SPAngel commented: “The update from the Company has underlined the progress that it is making towards reaching a point of self-sustainability, with the partial period that Stanley-1 was online making a significant contribution.
“With Stanley-2 likely to throw more light on the expected degassing of the accumulation, and the subsequent production of liquids, we believe that the management will be in a position to update its reservoir model and better understand the potential of the asset.”
In afternoon trading, Mosman shares were 2% lower at 0.24p.
-- Adds analysts comment, share price --