Production rises at Silvermere Energy's Mustang Island field

Shares in AIM-listed oil and gas exploration and development company Silvermere Energy rose after the company unveiled an operational update on its Mustang Island 818-L field in the Gulf of Mexico.

Shares in AIM-listed oil and gas exploration and development company Silvermere Energy rose after the company unveiled an operational update on its Mustang Island 818-L field in the Gulf of Mexico.

The company reported that total production and sales of gas recorded during the month were 11.5m standard cubic feet, representing a 32% increase month-to-month and total production of oil of 1,845 barrels, representing a 4% increase month-to-month.

Silvermere Energy reported that the well was flowing for 73% of the time in February, which it described as a "significant improvement" in the previous month. Flow rates were restricted at times, it said, due to partial obstruction of the choke with drilling mud and debris as well clean-up continued.

The company reported that oil produced during January and February had not yet reached the shore installation and sales meters due to slow flow rates in the 20" line at the high pipeline operating pressure. It said that the operator had advised that it intended to reduce pipeline operating pressure to increase flow velocities in the pipeline and thereby to deliver first oil sales.

Silvermere owns a 16.66% working interest in the I-1 well at the 818-L field and a 33.33% working interest in future wells on the leases.

Andy Morrison, Chief Executive Officer of Silvermere, commented: "We are pleased to note the improvements achieved during February 2013 which keep us on track to deliver flow rates in line with previous projections. The clean-up is continuing and we look forward to further progress with operations in March."

Silvermere's share price was up 1.92% to 6.62% at 11:48 on Tuesday.

MF

Recommended

Avoid easyJet shares – there are better airlines to invest in
Share tips

Avoid easyJet shares – there are better airlines to invest in

EasyJet used to be one of Europe’s most impressive airlines. But now it is facing challenges on all fronts and losing out to the competition. Rupert …
16 May 2022
Britain’s ten most-hated shares – w/e 13 May
Stocks and shares

Britain’s ten most-hated shares – w/e 13 May

Rupert Hargreaves looks at Britain's ten-most hated shares, and what short-sellers are looking right now.
16 May 2022
Anna Macdonald and Mikhail Zverev: Investing in innovative new frontiers
Investment strategy

Anna Macdonald and Mikhail Zverev: Investing in innovative new frontiers

Merryn talks to Anna Macdonald and Mikhail Zverev of Amati about investing in growth-focused innovation in the teeth of a tech-stock selloff, and the …
12 May 2022
BT is making progress and the dividend is back – but is it time to buy yet?
Share tips

BT is making progress and the dividend is back – but is it time to buy yet?

Investors in telecoms giant BT have seen dismal returns over the last 15 years. But there are signs that it is starting to turn things around, says Ru…
12 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
High inflation will fade – here’s why
Inflation

High inflation will fade – here’s why

Many people expect high inflation to persist for a long time. But that might not be true, says Max King. Inflation may fall faster than expected – and…
13 May 2022
What the Ukraine crisis might mean for ESG investing
Advertisement Feature

What the Ukraine crisis might mean for ESG investing

The Ukraine crisis has brought many of the issues around ESG investing into sharper focus. Where does the sector go from here?
3 May 2022