Crude Oil Analysis of Crestal-1

RNS Number : 8454O

Mosman Oil and Gas Limited

12 August 2014

 



12 August 2014

Mosman Oil and Gas Limited

("Mosman" or the "Company")

Crude Oil Analysis of Crestal-1 and Kotuku seep samples

Mosman Oil and Gas Limited (AIM: MSMN) the Australia and New Zealand focused oil exploration and development company has received its first crude oil analysis on Crestal-1, at its Petroleum Creek Project in New Zealand, which was carried out to assist in the design of the flow tests.

Oil was observed floating on the drilling fluid ("drilling mud") while drilling the Crestal-1 well. A drilling fluid sample taken from Crestal-1 was analysed by third party laboratories. The laboratory reports state that the oil is crude oil and has similar qualities to a sample taken from the Kotuku oil seeps in the nearby area. The Kotuku seep oil has already been extensively analysed since its discovery over a century ago (described in one report as a 28-31 deg. API medium wax oil, see www.gns.cri.nz/content/download/6138/33719/file. Whilst the quantity of oil in the drilling fluid sample was small, the laboratory results provides further confirmation of "moveable oil" which had been inferred from the electric wireline logs.

The cores taken from Cross Roads-1 and Crestal-1 have been transported to a laboratory ready for testing which will include extraction of oil from the core and testing the extracted oil to assist the ongoing process of measuring reservoir parameters. The results from the ongoing testing process will provide further valuable data for the team and the design of the testing equipment in order to advance the appraisal process to the next stage which is due to commence in September with the drilling and testing of Crestal-2  followed by the flow testing of Cross Roads-1 and Crestal-1.

Competent Person's Statement

The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman Oil and Gas, who has over 35 years of relevant experience in the oil industry.  Mr Carroll is a member of the Society of Petroleum Engineers (SPE).

John W Barr, Executive Chairman of Mosman commented: "We are making good progress at Crestal-1 and are highly encouraged by the latest laboratory testing. This analysis provides further data to support the ongoing appraisal process of the Petroleum Creek asset."

Enquiries:

Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director [e-mail] [e-mail]	SI Capital Limited Nick Emerson/Andy Thacker [phone]
Gable Communications Justine James/John Bick [phone] [e-mail]	ZAI Corporate Finance Limited Tom Price/John Simpson [phone]

Updates on the Company's activities are regularly posted on its website:

 www.mosmanoilandgas.com

About Mosman

Mosman (AIM: MSMN) is an Australia and New Zealand focused oil exploration and development company with a strategy to build a sustainable mid tier oil and gas business by acquisition and organic growth.

Currently, Mosman has two assets: the Petroleum Creek Project, a low cost onshore project in New Zealand and the Officer Basin Project in Western Australia. 

Petroleum Creek Project, New Zealand

The Petroleum Creek Project is a 143.6 sq. km low cost onshore exploration project located near Greymouth on the South Island in the southern extension of the proven Taranaki oil system. The project has a Mean Unrisked Recoverable Prospective Resource of 26.6 million barrels.  In the first month of drilling, oil was discovered at Cross Roads-1 well which declared an Oil Discovery in June 2014 and Crestal-1 was declared an Oil Discovery in July 2014.  In H2 2014, the focus is on appraisal of existing discoveries and additional exploration with both seismic and a multi-well drilling programme.

Officer Basin Project, Australia

Mosman has a 25% investment in the Officer Basin Project, a 22,527 sq. km large land holding with significant exploration potential, which lies in one of the more explored parts of the Basin with road access. The project area is in the Western Australian part of the Officer Basin and offers both conventional and unconventional potential with hydrocarbon shows reported and all elements of a petroleum system are present.

 

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