TIDMMSMN
RNS Number : 6703I
Mosman Oil and Gas Limited
20 April 2022
20 April 2022
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Q3 Production Update
Robust quarter with a 65% increase in net production
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces its production
summary for the three months ended 31 March 2022 ("March Quarter"),
reporting a 65% increase in net production and significant further
development potential in existing production leases.
The Company has a portfolio of development and exploration
projects, with a clear focus on maximising the opportunity for
further production growth and increasing cashflow. In addition to
its US projects, Mosman has two exploration areas in Australia
which are well positioned to take advantage of the increasing
demand for Helium and Hydrogen, in addition to Oil and Gas.
US Production
Net Production attributable to Mosman for the three months was
11,756 boe, an increase of 4,633 boe, or 65% from the three months
to December 2021 of 7,123 boe. The numbers include increased
production from a re-completion at Falcon and initial production
from Winters-2 (March 2022) but does not reflect the recent
production increase at the Winters-2 well announced on 12 April
2022.
Production Summary
3 Months to 3 Months to
31 March 2022 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 10,488 7,866 5,944 4,458
Stanley 7,197 2,799 5,130 1,741
Livingston 686 137 172 35
Winters 3,335 778 173 50
Greater Stanley - - - -
Arkoma 703 176 3,362 839
Total boe 22,409 11,756 14,781 7,123
The Net Production of 11,756 boe produced in the March Quarter
consisted of 2,951 barrels of oil and 51,066 MMBtu of gas.
The average sale prices achieved during the period was US$89.53
per barrel for oil and US$4.13 (January and February only) per
MMBtu for gas (in each case after transport and processing costs
but before royalties). Current prices of both oil and gas have
increased since the end of the quarter, with the Henry Hub
reference gas price currently in excess of US$7.50 per MMBtu.
The Net Production of 29,100 boe in the first 9 months of this
Financial Year already exceeds the 22,284 boe produced in the 12
months of the 2021 Financial Year.
Production numbers in the March Quarter 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 (75% Working Interest)
The well was recompleted in December 2021 and since that time
has continued to produce steadily with minimal water production
.
Galaxie (85% Working Interest)
Several potential drilling locations have been identified.
Further technical work is required before making any decisions.
Stanley (various 34.85% to 38.5% Working Interests)
Details on the status of the five production wells at Stanley
are:
-- Stanley-5 was placed on production in December 2021.
-- Stanley-4 is now connected to the new gas infrastructure with
initial flow rates of c. 275 thousand cubic feet per day, which is
c. 53 boepd, and is providing gas for gas lift to Stanley-5 as well
as contributing to gas sales.
-- Stanley-3 continues to produce steady oil rates.
-- Stanley-2 production has declined and this well is a candidate for recompletion.
-- Stanley-1 gravel pack was not successful and the well will be worked over again.
Winters-2 (23% Working Interest)
Production of gas from the Winters-2 well commenced in late
February 2022 and as a result, this quarter reflects one full month
of initial gas production. As announced on 12 April 2022, the gross
production flow rate in the period from 6 to 10 April averaged 902
Mcfpd which is circa 1,012 MMBtu or 170 boepd. In addition, 10 bopd
were produced bringing the five-day average gross production to 180
boepd, representing an increase of c. 31% on the gross production
rate as previously reported.
Livingston (20% Working Interest)
The Livingston property was one part of the acquisition of
Nadsoilco LLC ("Nadsoil"). One well (Davis & Holmes 11) that
has been shut-in for over one year was successfully worked over and
put on production in December.
Greater Stanley (40% Working Interest)
The strategy on these leases remains under review. These leases
are adjacent to the Winters lease where Winters-2 was drilled and
is now on production.
Arkoma (27% Working Interest)
Production had been increasing in the previous quarter.
Unfortunately, the site was hit by lightning early in the March
Quarter, which caused a fire and some tanks and control systems
were damaged. One well has recently been brought back on production
and work is underway to restore production from the other wells.
This asset is being held for sale as other projects are preferred
for further investment.
John W Barr, Chairman, said: "Mosman is very pleased to report a
65% uplift in net production despite a temporary disruption at
Arkoma. The completion of gas infrastructure at Stanley/Winters in
East Texas is a significant milestone, which opens up development
potential and benefits revenue, especially with current strong gas
prices. We continue to make steady progress and are increasing
production, with significant further development potential in
existing leases.
"In Australia, we are well positioned to take advantage of the
increasing demand for Helium and Hydrogen, in addition to Oil and
Gas, through our two exploration areas and are excited to see the
opportunities that these projects will deliver in the medium
term."
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 information 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
bopd Barrels of oil per day
Gross Project Means the production of BOE at a total project level
Production (100% basis) before royalties (where Mosman is the Operator)
and where Mosman is not the operator the total gross
production for the project
Mcf Thousand cubic feet
Mcfpd Thousand cubic feet per day
MBtu One thousand British Thermal Units
MMBtu One million British Thermal Units
Net Production Net to Mosman's Working Interest; Net Production attributable
to Mosman 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 / Adam
jwbarr@mosmanoilandgas.com 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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