Mosman Oil and Gas Limited Increase in Working Interest in US (9485G)
July 29 2021 - 8:22AM
UK Regulatory
TIDMMSMN
RNS Number : 9485G
Mosman Oil and Gas Limited
29 July 2021
29 July 2021
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Increase in Working Interest in US Production and Exploration
Projects
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development, and production company, has agreed to acquire an
additional 25% working interest ("WI") in the Falcon lease
(including the Falcon-1 well) and 25% of the adjacent Galaxie
lease. Mosman will acquire these WIs from Baja Oil and Gas LLC, for
a cash consideration of USD 160,000 and the effective date is 1
July 2021.
Since the recent recompletion, production at the Falcon-1 well
has been steady with the recent average flow rate of circa 112
boepd of gas and 7 bopd of oil condensate for a total of 119 boepd.
Unaudited gross revenue from Falcon-1 in June is estimated to be
circa USD$40,000 after royalties.
This acquisition means Mosman's share of production increases by
circa 30 boepd from 60 to circa 90 boped (as of the effective date
of 1 July). Mosman also has more control of the timing of technical
work and operations with the increase from 50% to 75% WI at Falcon
the lease and increasing to 85% ownership at the Galaxie lease,
where Mosman will become Operator. There is not currently any
independent report to quantify resources or reserves on the Falcon
on Galaxie leases.
As previously announced in the Company's interim results for the
six month period to 31 December 2020 ("H1 2021"), with the Falcon-1
well only coming on production in December 2020, there was no
revenue recognised by the Company until cash for hydrocarbon sales
was received in January 2021 and thus there was no revenue
recognised during H1 2021. Similarly all costs prior to January
2021 have been capitalised so there was no accounting profit or
loss for Falcon in H1 2021.
The consideration will be paid from the Company's existing cash
resources and the transaction is due to complete on 30 July 2021.
Baja has agreed to use part of the USD 160,000 consideration to
repay an existing debt to Nadsoilco; monies owed by Baja for work
at the Falcon-1 well, and a prepayment towards the drilling of the
Stanley-5 well. The AFE ("Authorisation For Expenditure") for the
Stanley-5 well has been issued and drilling is scheduled to take
place after the Winters-2 well is drilled.
John W Barr, Chairman, said:
"The Board is delighted to yet again increase its production
portfolio in Eastern Texas, and to increase ownership and control
of additional acreage."
Qualified 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
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement via Regulatory
Information Service ('RIS'), this inside is now considered to be in
the public domain.
Enquiries:
Mosman Oil & Gas Limited John NOMAD and Broker
W Barr, Executive Chairman SP Angel Corporate Finance LLP
Andy Carroll, Technical Director Stuart Gledhill / Richard Hail /
jwbarr@mosmanoilandgas.com Adam Cowl
acarroll@mosmanoilandgas.com +44 (0) 20 3470 0470
Alma PR Joint Broker
Justine James / Joe Pederzolli Monecor (London) Ltd trading as ETX
+44 (0) 20 3405 0205 Capital Thomas Smith
+44 (0) 7525 324431 020 7392 1432
mosman@almapr.co.uk
Updates on the Company's activities are regularly posted on its
website:
www.mosmanoilandgas.com
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