TIDMMSMN
RNS Number : 6925Z
Mosman Oil and Gas Limited
26 January 2022
26 January 2022
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Production Update
43% increase in six month net production
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces its production
summary for the six months ended 31 December 2021.
Net Production attributable to Mosman for the six months was
17,344 boe, an increase of 5,201 boe, or 43% increase compared to
the six months to June 2021 of 12,143 boe. This is despite the
operational issues experienced in December that reduced the
production in the 3 months to 31 December. This progress reflects
the uplift in production from growth of existing projects, the
acquisition of Nadsoilco and an increased interest in Falcon. It
does not reflect recent increases in production at Falcon which
occurred after 31 December 2021, and does not include the Winters-2
well which was drilled in November and was recently recompleted and
flowed gas. It also only includes minor production from
Stanley-5.
Production Summary
3 Months to 6 Months to
31 December 2021 31 December 2021
boe boe
=============================== =================================
Gross Project Net Production Gross Project Net Production
Production to Mosman Production to Mosman
============== =============== ============== ===============
Gross boe Net boe Gross boe Net boe
============== =============== ============== ===============
Falcon 5,944 4,458 14,800 11,099
============== =============== ============== ===============
Stanley 5,130 1,741 11,705 4,141
============== =============== ============== ===============
Livingston 172 35 501 100
============== =============== ============== ===============
Winters 173 50 349 101
============== =============== ============== ===============
Greater Stanley - - - -
============== =============== ============== ===============
Arkoma 3,362 839 7,617 1,903
============== =============== ============== ===============
Welch (sold)
============== =============== ============== ===============
Total boe 14,781 7,123 34,972 17,344
============== =============== ============== ===============
Production numbers are based on the current best available data
and are subject to adjustment upon receipt of final sales invoices
from the purchasers of products.
Falcon
There was natural decline in production from the producing zone
in October and November that meant it was time to add an additional
production zone. The well was shut in to perform the workover.
The well was successfully perforated in December. Production in
December was constrained as production facilities were
upgraded.
Mosman reported on 17 January 2021 that production was 113 gross
boepd with a 7/64 choke
Since adjusting the choke to 8/64 seven days ago, the well has
averaged 133 gross boepd, a 64% increase compared to the average
gross production for the six months ended 31 December 2021.
Stanley
On the Stanley project, production has been constrained mainly
because Stanley-4 is waiting on gas infrastructure to be completed
before it can be returned to production. This infrastructure is a
combination of existing pipelines controlled by Nadsoilco, new
pipelines and connections requiring multiple land access agreements
and regulatory approvals. The infrastructure will have significant
short term and long term benefits to the Stanley area.
Stanley-5 was drilled and been producing at an average daily
rate circa 50 bopd since coming on production in December 2021.
Stanley-3 continues to produce steady oil rates, but the gravel
pack on Stanley-1 was not successful and the well will be worked
over again. Stanley-2 production has declined and this well is a
candidate for recompletion.
Livingston
The Livingston property was one part of the acquisition of
Nadsoilco. One well (Davis & Holmes 11) that has been shut-in
for over one year was successfully worked over and put on
production in December. Nadsoilco owns 20% of the well.
Production has been circa 10 to 20 bopd (gross) with some water,
whilst production facilities are being modified to optimize the
production rate.
Greater Stanley
The workover of a Duff lease well was carried out. The
recompletion was unsuccessful, and the production strategy on this
lease is now under review.
Winters
Winters-2 has been recompleted in the Wilcox sand 6,695-6,700
feet and flowed gas. Flow tests are expected to be conducted later
this week and will be reported in due course. Gas infrastructure is
being installed to enable gas sales from the Winters and Stanley
leases.
Arkoma
Production had been steady until there was minor damage from a
lightning strike in December 2021 which is now repaired. Two wells
are shut-in awaiting workovers. This asset is being held for sale
as other projects are preferred for further investment.
Cinnabar
3D seismic data was successfully reprocessed and interpreted,
indicating several potential drilling locations. Mosman will seek
to farmout at least one well at the annual NAPE Summit 2022 in
Houston in February.
John W Barr, Chairman, said: "Mosman is pleased to report an
uplift in production from the previous half year which reflects a
daily production rate of 95 boepd for the six months to 31 December
2021.
"Importantly, since 31 December we are seeing growth in
production which has been achieved with the recompletion at Falcon,
the drilling and start of production at Stanley-5 and the workover
of -D&H-11. We anticipate further increases from workovers at
Stanley, Stanley-4 returning to production and Winters-2 starting
production once gas infrastructure is completed."
Quarterly Updates
Going forward Mosman will move to quarterly production
updates.
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.
Glossary:
boe Barrels of oil equivalent based on calorific
value as opposed to dollar value
boepd Barrels of oil per day of oil equivalent based
on calorific value as opposed to dollar value
-----------------------------------------------------
Gross Project Means the production of BOE at a total project
Production level (100% basis) before royalties (where Mosman
is the Operator) and where Mosman is not the
operator the total gross production for the project
-----------------------------------------------------
Net Production Net to Mosman's Working interest attributable
production means net to Mosman's working interest
before royalties
-----------------------------------------------------
Enquiries:
Mosman Oil & Gas Limited NOMAD and Joint Broker
John 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
Notes to editors
Mosman (AIM:MSMN) is an oil exploration, development, and
production company with projects in the US and Australia.
Mosman's strategic objectives remain consistent: to identify
opportunities which will provide operating cash flow and have
development upside, in conjunction with progressing exploration of
existing exploration permits.
The Company has seven projects in the US: Stanley, Greater
Stanley, Livingston, Winters, Challenger and Champion in East Texas
and Arkoma in Oklahoma in addition to exploration projects in the
Amadeus Basin in Central Australia.
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END
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