TIDMMSMN
RNS Number : 2285O
Mosman Oil and Gas Limited
30 January 2023
30 January 2023
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Quarterly Production and Cinnabar-1 Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development, and production company, announces its production
summary for the three months ended 31 December 2022 ("Q2" or
"December Quarter") and recent production at the Cinnabar Project
in East Texas.
US Production (Various interests)
Net Production from existing developed projects was 6,212 boe
(circa 67 boepd) during the December quarter with increases at
Stanley and Livingston (Greater Stanley) partially offsetting
reductions at Winters and Arkoma.
Following the success of the development work at Cinnabar-1
(Mosman 75% working interest), the well is now on production and
has delivered a material increase in production, which will be
reflected in the next quarterly production report. The initial 24
hour flow test rates at Cinnabar were 120 bopd of oil and 180 Mcfd
gas (total of 150 boepd) and the well continues to produce at
approximately these rates. The Mosman net oil production of 90 bopd
from Cinnabar represents an indicative 134% increase in overall Net
Production (when comparing the December Quarter production average
daily rate of 67 boepd with the Cinnabar initial test rate of 90
bopd and it is added to it).
December Quarter Production Summary
3 Months to 3 Months to
31 December 2022 30 September 2022
boe boe
=============================== ===============================
Gross Project Net Production Gross Project Net Production
Production to Mosman Production to Mosman
============== =============== ============== ===============
Gross boe Net boe Gross boe Net boe
============== =============== ============== ===============
Cinnabar - - - -
============== =============== ============== ===============
Stanley 12,943 4,897 8,270 3,175
============== =============== ============== ===============
Winters 3,431 800 11,644 2,717
============== =============== ============== ===============
Livingston 1,238 248 531 106
============== =============== ============== ===============
Arkoma 1,070 267 3,842 960
============== =============== ============== ===============
Total boe 18,682 6,212 24,287 6,958
============== =============== ============== ===============
The Net Production of 6,212 produced in the December Quarter
consisted of 3,776 barrels of oil and 14,128 MMBtu of gas. The
average sale prices achieved during the period was US$82.02 per
barrel for oil and US$5.69 per MMBtu for gas (September quarter was
US$91.35 and US$6.99 respectively, and in each case after transport
and processing costs but before royalties).
Production numbers in the Quarter are based on the current best
available data (including field data if necessary) and are subject
to adjustment upon receipt of final sales invoices from the
purchasers of products.
Major Project Updates
Cinnabar (75% Working Interest)
Cinnabar continues to produce oil at over 120 bopd gross (90
bopd Net Production) with additional associated gas. The pipeline
from the Cinnabar-1 well to the production infrastructure was
installed and gas production infrastructure is being upgraded.
Currently oil is collected by tanker, and the gas will be used to
gas lift G-1 and for gas sales.
A Reserve Report has been commissioned and is temporary delayed
by ill-health of the engineer.
Technical work is being undertaken to enable a Development Plan
to be considered. This includes an update of the 3D seismic
interpretation and the geological model. This work is expected to
be completed in April/May 2023 as a prior to any new drilling being
decided.
Stanley (34.85% to 38.5% Working Interest)
Stanley production benefitted from completion of the gas
infrastructure and workovers to optimize production. January gross
production to date is 226 boepd, circa 54 boepd Net Production.
Winters (23% Winters-2 Working Interest)
Winters-2 gross production had been dropping and was restored
with a small workover. Recent (5 day average) production has been
circa 10 bopd and 450 Mcfd (9 circa 80 boepd). This is circa 21
boepd Net Production.
Current indications (based on January field data for production)
is that net production to Mosman from these major projects is circa
165 boepd. If that trend continues, the third quarter net
production will be an outstanding result.
Cash Position
As at 31 December 2022 Mosman had cash in bank of circa
$976,000.
John W Barr, Chairman, said: "We are pleased to report on the
progress we have made to deliver another solid quarter.
"Cinnabar is now the project that makes the biggest production
contribution to Mosman. The delivery of this result is a step
change in production and revenue. There is significant potential at
Cinnabar and we will continue to build on this strong
foundation"
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.
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 Monecor (London) Ltd trading as OvalX
+44 (0) 20 3405 0205 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 several projects in the US, in addition to
exploration projects in the Amadeus Basin in Central Australia.
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
--------------------------------------------------------------
bo Barrels of oil
--------------------------------------------------------------
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
--------------------------------------------------------------
MBtupd One thousand British Thermal Units per day
--------------------------------------------------------------
MMBtu One million British Thermal Units
--------------------------------------------------------------
MMBtupd One million British Thermal Units per day
--------------------------------------------------------------
Net Production Net to Mosman's Working Interest; Net Production attributable
to Mosman means net to Mosman's Working Interest before
royalties
--------------------------------------------------------------
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END
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