Exploration and production company Mosman Oil and Gas has increased its stake in the Arkoma stacked pay project in Oklahoma, US, to a total of 27%.
The increase in interest follows the completion of the relevant payments by the company and Blackstone Oil and Gas.
Mosman originally elected to exercise an amended First Option agreement for the project last month.
A draft report from Moyes noted that the project has a range of up to 2.5 million barrels of recoverable oil and gas equivalent.
Mosman Oil and Gas chairman John Barr said: “We have achieved our initial objective in respect to increasing our interest in the attractive Arkoma stacked pay producing asset to 27% based on due diligence, sound data and technical analysis.
“We have also funded operational upgrades at Arkoma that are expected to lead to increased oil production and cash flow.
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By GlobalData“The strategy of acquiring oil production assets when oil prices were low is proving to be sound, given recent oil price increases.”
The company is now set to proceed with the installation of electrical submersible pumps (ESPs) and infrastructure upgrades at the site in order to facilitate the anticipated rise in production volumes.
Mosman and Blackstone have also begun negotiations relating to the existing second option, which would allow Mosman to acquire up to an aggregate 55% interest in the Arkoma project by 27 March.
