Mosman Oil and Gas Limited Positive results from Welch Horizontal Well Study (3283F)
February 20 2018 - 2:00AM
UK Regulatory
TIDMMSMN
RNS Number : 3283F
Mosman Oil and Gas Limited
20 February 2018
20 February 2018
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Welch Permian Basin Project Update
Positive results from Welch Horizontal Well Study
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, has completed the
prefeasibility study on its Welch Permian Basin Project in
Texas.
Mosman identified the development potential would be to drill
horizontal wells which it expected would increase both Reserves and
production. Mosman commissioned a Pre-Feasibility Study (PFS) and,
additionally, an independent Reserves Report.
The PFS has been completed and results indicate the Welch
project has attractive economics at the current oil price with
anticipated flow rates of 60-120 bopd per well (based on nearby
well results).
The Moyes and Co Reserves Report for the Welch project will be
based on existing producing vertical wells and potential horizontal
development wells. This report is expected to be delivered by the
end of April 2018.
Given the positive results of the PFS, Mosman will now proceed
with the next phase which includes a Feasibility Study and
obtaining the required approvals. The first horizontal well could
be drilled and brought on production in Q3 or Q4 2018, subject to a
number of conditions being completed, such as financing and
permitting. The Moyes and Co Reserves Report is considered
important for financing as it is an independent view of the project
and will be required if Bank financing is to be considered.
John W Barr, Chairman, said: "Mosman is very pleased with the
results of the PFS at Welch and has instructed the commencement of
the Feasibility Study.
"The Welch project provides both a strong revenue stream and the
foundation for growth. The horizontal well development is being
systematically progressed and we expect to have several financing
alternatives that will be finalised before the final development
decision is made by the Board."
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 NOMAD and Broker
John W Barr, Executive SP Angel Corporate Finance
Chairman LLP
Andy Carroll, Technical Stuart Gledhill / Richard
Director Hail / Soltan Tagiev
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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