Mosman Oil and Gas Ltd. chairman John Barr and non-executive director John Young will step down from the company’s board, it said in a news release.
Barr is also stepping down as director effective September 30. Young’s resignation is effective immediately.
Mosman technical director and chief executive Andy Carroll and non-executive director Nigel Harvey have begun a process to review and appoint new directors, the statement said.
US production updates
Meanwhile, Mosman issued an update announcing the completion of a hydraulic fracturing procedure on its G-2 production well at its Cinnabar project in Texas. Mosman was successful in connecting the Wilcox First Reservoir area to the production well and allowing the area to flow, the company said in a recent press release. The well is currently being drilled intermittently, allowing pressure to build up and flow for a while before shutting in to allow the pressure to build, Mosman said.
Mosman has completed a detailed development plan for the Cinnabar lease, which has three producing wells. The Cinnabar Field is located in Tyler County, approximately 30 miles north of Beaumont, Texas.
Mosman owns about 75 percent of the well and leases 350 acres. Mosman Operating LLC, a wholly owned subsidiary of Mosman, is the operator of the lease.
“It is positive that the repair of the historic G-2 well has resulted in the establishment of the initial flow. We continue to make progress to optimize both oil and gas production at Cinnabar,” Mosman president John Barr said in the statement.
For the fiscal year ending June 30, Mosman announced net production of 31,067 barrels of oil equivalent (boe), compared with 37,915 boe for the same period in 2022. Production was hit for a stoppage at its Falcon well in East Texas. While there is “remaining potential in Falcon,” lower gas prices meant “a renewal is not a high-end investment alternative,” Mosman said in an earlier news release.
Mosman production for the June 2023 quarter was 15,332 gross boe and 5,937 net boe, down from March quarter figures of 28,632 gross boe and 11,960 net boe, mainly due to issues at Cinnabar, as well as sand production issues requiring additional screens and cleaning at Stanley, according to the release. However, the company said it achieved a 73 percent annual increase in production at Stanley with the installation of a gas lift and jet pumps.
“The company continues to develop and maintain its project portfolio, with a clear focus on its strategic plan to maximize the opportunity to further grow production and increase cash flow. While we are disappointed with the outcome at Falcon , the resolution of the sand issues at Stanley and the upgrades taking place at Cinnabar can deliver more sustainable production growth,” Barr said.
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