Mosman acquires oil and gas assets in West Texas
Mosman Oil and Gas, an Australia-based exploration, development and production company, has agreed to acquire the Welch Permian Basin project in Dawson County, West Texas, US.
The transaction contains multiple oil and gas leases and is valued at $310,000 and involves Walsh Petroleum, Granite Pacific and Cornell Energy as the selling parties.
It is in line with the company’s strategic objective of identifying, acquiring and operating projects with cash flow and development upside.
Mosman Oil and Gas chairman John Barr said: “The Welch Permian Basin project is an ideal acquisition as it meets Mosman’s stated objectives, immediately doubles our oil production and has significant upside potential.
“Many similar opportunities are under review and I am pleased that we are able to demonstrate the active execution of our business plan.”
The 34 barrels-of-oil-per-day Welch project is located 550km west of Dallas expected to have near-term upside from low-cost workovers and development potential in the medium term.
The acquisition comprises 653 acres of leases with ten producing wells, seven injector wells, and ten shut-in wells, and additionally contains production equipment and facilities.
A previous owner of the project, Walsh Petroleum, developed plans for three horizontal wells on the Welch leases based on adjacent acreage analogues.
Mosman needs to undertake further technical work to evaluate the feasibility of drilling these horizontal wells.
In an attempt to enhance production for increased cash flows, the company is planning to manage the lease operating expenses.
The company is considering workovers for certain existing shut-in wells.
Subject to standard settlement issues, the acquisition is set to be completed by the end of the month.