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Welch Permian Basin

The Project is located in the Permian Basin, in and around the Welch township in Dawson County, West Texas, approximately 550 km west of Dallas. It consists of 653 acres of leases (held by production) with 10 producing wells, 7 injector wells, and 10 shut-in wells. The acquisition includes production equipment and facilities.

The Project is a small part of the larger Welch Oil Field, which was discovered in 1941 and has produced in total over 170 million barrels.

After waterflood commenced in 1997, the Project produced at rates of between 100-200 bopd until 2009, and then gradually declined. The average sales volume from the Project over the last 13 months has been 34 bopd (gross). 

There is no formal resource estimate available for these leases.

One of the previous owners  had developed plans for three horizontal wells on the leases based on adjacent acreage analogues that could add potentially significant additional daily production to the Project. These plans look attractive but further technical work needs to be done by Mosman before a decision could be made to proceed with drilling these horizontal wells.

In the near term, Mosman’s plan is to critically manage the lease operating expenses and low cost initiatives to increase production to increase cash flow. Mosman has already identified existing shut in wells that will be considered for workovers in the shorter term.