TIDMMSMN
RNS Number : 4495U
Mosman Oil and Gas Limited
25 November 2019
25 November 2019
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Further Production Increases
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces an update on its
record production at the Stanley Project in the USA; and other
matters.
Production
At the Stanley Project the gross average production for the
month of November to date is c290 bopd (on 1 November 2019
production was c250 bopd as previously reported). Production levels
are now almost in line with Company expectations for the project.
It is highlighted that:
- The operator recently recommended at Stanley-1 a gas lift; a
gravel pack installation; and a new separator. These tasks have now
been completed, and in the very short term operational efforts are
now focussed on optimizing lifting parameters in order to maximize
production from this well
- Oil production from Stanley-2 continues at c50 bopd (gross)
- Oil production from Stanley-3 is c200 bopd (gross). This now appears to have stabilised.
Current production at each of the three Stanley wells is from
one of several potential production zones contained within each
well and the longer-term plan remains to recomplete wells as
required once lower zones are depleted, at which point the well
will be recompleted in higher zones. Going forward, Mosman does not
plan to release individual well production rates which is
consistent with the manner that other projects are reported. New
wells will be reported separately whilst initial production is
stabilised.
Production at Welch and Arkoma have remained steady and no
significant changes are reported.
New Development Wells
The Stanley-4 development well planning is now complete and is
expected to be drilled in February 2020. It is currently planned
that Stanley-4 will use the same surface facilities as the other
Stanley wells but with some upgrading required, including
additional tank/s and a separator.
Mosman's participating final interest in the planned Stanley-4
will be similar to the other Stanley Project wells, adjusted should
there be any non-participating working interest partners.
The Falcon-1 well preparations in the Champion Project are also
progressing. Shortly the operator is expected to perform on-site
work to determine if an existing well located on the lease is
suitable for re-use to drill Falcon-1. This well would be acquired
with relevant equipment and it is believed to provide the lowest
cost means to access the Falcon target reservoir.
Mosman expects to provide a further update on the timing and
funding of the Falcon well in due
course.
New Projects
As previously reported, Mosman's strategic partner, Baja Oil and
Gas, LLC, is currently and actively reviewing potential additional
development opportunities for acquisition, utilising a similar
evaluation model to that which has proven particularly successful
at the Stanley Project. Any announcement on these very commercially
sensitive endeavours will be made only once they are fully
completed.
Exploration (Australia)
Mosman has executed a Memorandum of Agreement (MOA) and a Heads
of Agreement (HOA) with parties in respect to the Amadeus Project
in Central Australia. It is not currently possibly to predict the
likely outcome or timetable of the discussions which will include a
site visit, and data review in Sydney.
Mosman was recently advised by the relevant Minister in the
Northern Territory Government that he has approved a 12 month
suspension of the Year 3 work programme commitments for the permit,
and a corresponding extension of the permit term.
The next vital step will be the completion of a survey by the
Aboriginal Areas Protection Authority (AAPA) to ensure no areas of
cultural significance will be disturbed by the planned seismic
activities.
Other Matters
Subsequent to the recent listing of GEM International Resources
Inc. (GEM) on the NEX Exchange in Canada, the Board of GEM was
seeking to undertake several activities including a capital raise
and securing an interest in a new project.
GEM has recently announced a CAN$500,000 capital raising and
separately but at the same time a CAN$270,250 debt to equity swap
by various parties. The independent Mosman directors (J W Barr
holds a directorship with GEM) have agreed to convert CAN$50,000 of
the GEM loan into shares in GEM. The remainder of the loan and
interest thereon will be repaid. Mosman remains focused on
achieving the best return for the investment in GEM.
GEM is continuing to secure an interest in a new project.
Outlook
Mosman's focus remains delivering on its strategic objective; to
identify opportunities which will provide operating cash flow and
have development upside, in conjunction with progressing
exploration of existing exploration permits. The increase in
production since 30 June 2019 and the planned wells represent a
continuation of that objective.
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 Chairman SP Angel Corporate Finance LLP
Andy Carroll, Technical Director Stuart Gledhill / Richard Hail
jwbarr@mosmanoilandgas.com / Soltan Tagiev
acarroll@mosmanoilandgas.com +44 (0) 20 3470 0470
Alma PR
Justine James
+44 (0) 20 3405 0205
+44 (0) 7525 324431
mosman@almapr.co.uk
Updates on the Company's activities are regularly posted on its
website www.mosmanoilandgas.com
Definitions
bopd Barrels of oil per day
boe Barrels of oil equivalent
===========================================
boepd Barrels of oil equivalent per day
===========================================
Daily Average Gross Production Average of barrels of oil equivalent
per day over the period
===========================================
Gross Sales Reference to sales is boe that has
been sold from the project throughout
the period
===========================================
Net Sales Attributable Mosman's portion of Gross sales less
to Mosman royalties owed to leaseholders
===========================================
Net Production Attributable Mosman's portion of Total Gross Production
to Mosman less royalties owed to leaseholders.
===========================================
Total Gross Production boe produced on the project throughout
the period. Includes oil still held
as inventory
===========================================
Total Project Basis Refers to performance of Sales or
Production on a
100% basis of the four projects that
Mosman has invested in.
===========================================
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END
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