Increased Production & new Corporate Presentation

RNS Number : 6424Z

Mosman Oil and Gas Limited

04 September 2018

 

4 September 2018

Mosman Oil and Gas Limited

("Mosman" or the "Company")

Increased Production and new Corporate Presentation

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company advise a production update; and, that a new Corporate Presentation will today be added to the Company's website.

Summary

Mosman is presenting to investors and industry participants in London this week, including the Oil Capital Conference today and the Proactive Investors One2One Investor Forum on the evening of Thursday 6 September. This Corporate Presentation will shortly be available on the Mosman website.

USA production

The only material update to the information released on 30 July 2018 is that production rates at the Welch Permian Basin Project ("Welch") continue to increase. Following workovers in June 2018 average gross production before royalties was reported to have increased to circa 44 barrels of oil per day ("bopd").

Since the Drennan-8 well was brought back on production on 4 August, Welch gross production (before royalties) has averaged 50 bopd.

Stanley-1 well

Stanley-1 has now been completed for production and is currently flowing oil to tanks.

Mosman has recently (since 30 June) paid approximately USD 143,000 for the acquisition and costs to put the well on.

Stanley-1 gross production is still expected to be 150 bopd, of which Mosman's 16.5% share is approximately 25 bopd before royalties and 20 bopd after royalties.

The wireline logs from Stanley-1 indicate multiple zones which may warrant additional production wells. Further development plans will be discussed with other owners in Texas next week.

Future Production

The expectation is that the total USA production numbers will continue to improve driven by the increased production identified at the Welch Permian Basin Project, the recent successful drilling at Stanley-1, the potential of a follow up well at Stanley (which is anticipated to have similar costs and similar or higher production); and the potential horizontal well/s at Welch which at this time remains subject to a Board decision on capital allocation and funding.

Australian Exploration

Synterra Technologies, the Calgary based geophysical service provider ("Synterra") have provided the initial results from the Stage Two Seismic Reprocessing and Interpretation Study. The results show that existing local and regional seismic data is good quality. The interpretation confirms that the salt tectonic structuring can been seen in EP 145, as it can in the area where Santos has announced it intends to drill the large Dukas prospect in the next six months. Mosman are working with Synterra to determine the future work program at EP 145, which may include additional seismic to fill in the data gaps with the objective of determining a drilling location, and presenting the full package of information to attract a farm-in partner.

Cash at Bank

Cash at bank as at 30 June 2018 (unaudited) was more than AUD 1.3 million.

John W Barr, Chairman, said: 

"The Company's Strategic Objective has been clearly identified and The Board will continue to pursue that objective and implement the its business plan. Mosman has acquired projects with production, revenue, and excellent development potential. We will be making important capital allocation decisions in the next few weeks as some projects are accelerated, and others deferred.

Next week two Mosman Executive Directors have a series of meetings in Texas with participants in the Company's production assets."

Competent Person's Statement

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

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:

Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director [e-mail] [e-mail]	NOMAD and Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Soltan Tagiev [phone]
Gable Communications Limited Justine James / John Bick [phone] [e-mail]	Joint Broker SVS Securities PLC Tom Curran/ Ben Tadd [phone]

Updates on the Company's activities are regularly posted on its website www.mosmanoilandgas.com

 

END

 

 

UPDKXLFBVKFEBBX