Mosman Oil and Gas Ltd. acquired the Welch Permian Basin Project in West Texas—doubling its oil production, the Australian-based company said Sept. 11.
The Welch Project consists of 653 acres of HBP leases in Dawson County, Texas, with 10 producing, seven injector and 10 shut-in wells. The acquisition includes production equipment and facilities, according to the company release.
The project is part of the larger Welch Oil Field, which was discovered in 1941, the release said.
Mosman will acquire the oil and gas leases that comprise the project from Walsh Petroleum Inc., Granite Pacific LC and Cornell Energy LLC for $310,000, which the company said it will fund from existing cash reserves.
John W. Barr, Mosman's chairman, said in a statement: “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.”
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Current net production from properties is about 26 MMcf/d.