TIDMMSMN
RNS Number : 9670E
Mosman Oil and Gas Limited
12 May 2017
12 May 2017
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Corporate Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces an update in respect
to its current operations.
USA Projects
Mosman completed the acquisition of the Strawn Oil Project in
Texas ('Strawn') at the beginning of May with its Strategic
Alliance partner Blackstone Oil and Gas. This was the first
acquisition to conclude as part of Mosman's growth strategy and the
Company is continuing to evaluate oil and gas opportunities, of
which a select number of potential opportunities remain under
review.
At Strawn, the process of increasing production and implementing
maintenance is underway. Once essential work, including repairs to
pumping equipment and roads, are completed, well workovers will
then commence. The Company's plan is to steadily build production
and thus cash flow, which will initially be re-invested with a view
to increasing production.
The Company's Technical Director will shortly return to North
America to meet with the team and review progress at Strawn in
addition to further evaluating other projects.
Mosman will provide an update at the appropriate time, should
matters progress on any additional projects.
AUSTRALIA
Amadeus Basin Permits
Mosman owns and operates two granted permits (EP 145 & 156)
and one application (EPA 155).
There is significant ongoing activity in the region, which
appears to be fundamentally driven by the current domestic gas
shortage on the East Coast of Australia. Mosman's permits are
strategically located as they are surrounded by, or adjacent to
several permits held by major energy suppliers. In particular EP
145 is adjacent to the Mereenie project on which the major
Operator, Central Petroleum Limited, has received a takeover offer
from Macquarie Bank Limited The Northern Territory Government has
granted approval to the NT Gas Pipeline that will take gas from NT
to the East Coast markets. Santos continues the farmin work on
permits adjacent to Mosman permits, and Origin Energy Limited has
increased their interests in NT exploration acreage.
The fieldwork programme at EP145 was completed some time ago,
but unfortunately the key consultant has been seriously ill and the
report is still being finalised.
In EP 156, the planned and approved airborne survey that was
delayed due to weather is now expected to be flown very
shortly.
For EPA 155, the next step is native title approval, with a site
visit scheduled for later this year.
NEW ZEALAND
Murchison
In 2016 after a long delay Mosman received approval from NZPAM
to modify the work program whereby LiDAR replaced a licence
condition to acquire magnetic and gravity data. The analysis of the
LiDAR survey was very useful. However it confirmed that the planned
drilling location in the Blackwater Valley was not suitable due to
multiple faults at that location. Further work indicates that the
preferred well location may be the testing of a large anticline in
the Te Wiriki area in the North West of the permit. Extensive
planning of a seismic survey has subsequently taken place to
provide an accurate location for the well. Prior to the survey
commencing, the normal landowner and other consents have to be
obtained, and the equipment mobilised. Mosman is in discussions
with NZPAM regarding the timing of this work program, and has
specifically requested a Change of Conditions for the permit from
NZPAM as the drilling scheduled for early in 2017 will be delayed.
This is not unusual in the industry; for example an extension was
granted by the NT Government on both the Amadeus Permits in
2016.
Mosman continues to actively pursue farm-in investment to fund
the drilling. The marketing currently is being conducted through
industry consultants and a media agency that works with NZPAM and
other companies in NZ.
Petroleum Creek
The lower oil price and flow test results indicate the wells are
not commercial. The wells are being actively monitored and if
circumstances do not change then the wells may be plugged and
abandoned so that the permit can be relinquished.
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.
INVESTMENTS
Gem International Resources Inc. (TSX.V GI) (Gem)
Mosman owns 8,000,000 shares and eight million two year 15.0
cent (CAD) options acquired at a price of 5.0 (CAD) cents. GEM is
currently trading at 5.0 (CAD) cents.
Gem is focussed on a diamond project in Angola, and has recently
announced:
-- The completion of a private placement raising CAD$3,000,000.
-- An extension of the existing Angolan option, wherein the
potential kimberlite assets are now included with the current
alluvial assets.
-- An extension of the timetable in respect to the second raising and the Angolan option.
GEM's website can be found at: http://gemdiamondmining.com
Hemisphere Energy Corporation (TSX.V HME) (Hemisphere)
Mosman did own 2,000,000 shares in Hemisphere, acquired at a
price of 19.0 (CAD) cents a share. HME is currently trading at 23.5
(CAD) cents.
Mosman recently sold down approximately 500,000 shares in
Hemisphere, locking in a profit on that portion of the
investment.
Hemisphere's website can be found at:
www.hemisphereenergy.ca
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 NOMAD and Broker
John W Barr, Executive SP Angel Corporate Finance
Chairman LLP
Andy Carroll, Technical Stuart Gledhill / Richard
Director Hail
jwbarr@mosmanoilandgas.com +44 (0) 20 3470 0470
acarroll@mosmanoilandgas.com
Gable Communications Limited
Justine James / John Bick
+44 (0) 20 7193 7463
mosman@gablecommunications.com
Updates on the Company's activities are regularly posted on its
website
www.mosmanoilandgas.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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