Silvermere Energy begins work-over of Mustang Island well

Silvermere Energy has started work-over operations on the I-1 oil well on the Mustang Island 818-L field in the Gulf of Mexico, the company announced Monday.

The oil and gas group said it has received the equipment required to remedy blockages at the well which experienced restricted flow rates last month due to obstructions of the well bore.

Last month total production of sales and gas came to 883,000 standard cubic feet and total production of oil was 127 barrels.

"We are pleased that the decision has been taken to undertake a work-over of the I-1 well, as we believe this should enable us to deliver previously projected flow rates, to increase the associated cash flow and therefore to demonstrate the value of the asset," Chief Executive, Andy Morrison, said.

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

Shares fell 2.50% to 4.88p at 09:45 Monday.

RD