TIDMMSMN
RNS Number : 0414T
Mosman Oil and Gas Limited
15 March 2023
15 March 2023
Mosman Oil and Gas Limited
("Mosman" or the "Company")
78% Increase in Cinnabar Project Proved Reserves
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development, and production company, announces a significant
reserve update in respect of its producing Cinnabar Project in
Tyler County, Texas.
Reserve Report
After the successful development drilling of and production from
the Cinnabar-1 well, Mosman commissioned an updated independent
Reserve Report for the Cinnabar Project (the "Report").
The Report was prepared on the basis of a potential full-field
development of the Cinnabar Project where Mosman has a 75% Working
Interest. A wholly-owned subsidiary Mosman Operating LLC operates
the Project.
Total Proved Reserves have increased by approximately 78% from
887,000 to 1,581,000 gross boe.
Gross Reserves (MBOE):
Proved Proved Proved Total Total Total
Developed Developed Undeveloped Proved Probable Proved
Producing Behind Pipe Plus Probable
302 147 1,132 1,581 65 1,646
------------ ------------ ------- --------- --------------
A further breakdown of the Reserves is set out below:
Gross Net attributable Mosman
75% Working Interest less
royalties
Proved Proved Proved, Proved Proved Proved,
& Probable Probable & Probable Probable
& Possible & Possible
------- ------------ ------------ ------- ------------ ------------
Oil & Liquids
reserves
per asset,
in thousands
of barrels.
From production
to planned
for development 1,184 1,230 1,230 648 673 673
------- ------------ ------------ ------- ------------ ------------
Total for
Oil & Liquids 1,184 1,230 1,230 648 673 673
------- ------------ ------------ ------- ------------ ------------
Gas reserves
per asset,
MMCF
From production
to planned
for development 2,299 2,413 2,413 1,258 1,320 1,320
------- ------------ ------------ ------- ------------ ------------
Total for
Gas 2,299 2,413 2,413 1,258 1,320 1,320
------- ------------ ------------ ------- ------------ ------------
This Report was prepared by D Braxton and Associates in March
2023 and conforms to SPE-PRMS guidelines.
"Gross" are 100% of the reserves and/or resources attributable
to the licence whilst "Net attributable" are those attributable to
Mosman's Working Interest after royalties.
Theoretical Development Schedule
Reserves are based on a potential full-field development on the
producing 352 acre Cinnabar Project involving 5 further development
wells with one well drilled in 2023, two in 2024 and two more in
2025. It also assumes well recompletions when appropriate to
produce separate production zones. The final development plan
remains subject to a number of matters including Board approval and
funding availability.
Working Interest (WI)
Mosman acquired 97% WI and farmed out to reduce Mosman's
exposure to the Cinnabar-1 well drilling costs. This farmout became
effective with the drilling of the well in November 2022 and
reduced Mosman's WI to 75%.
John W Barr, Chairman, said: "We are extremely pleased with the
new Reserve Report that confirms significant quantities of Reserves
at Cinnabar.
"Cinnabar is now the most significant project in Mosman's
portfolio both in terms of production and reserves. "
"The Board can now consider the best way to commercialise these
Reserves."
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 information is now considered to
be in the public domain.
Enquiries:
Mosman Oil & Gas Limited John NOMAD and Joint 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 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
Barrel Barrels of crude oil and liquids
-------------------------------------------------------
BOE Barrels of oil equivalent based on calorific
value of as opposed to dollar value. The term
allows for a single value to represent the sum
of all the hydrocarbon products that are forecast
as resources. Gas and liquids quantities are
converted to an oil equivalent based on a conversion
factor that is recommended to be based on a
nominal heating content or calorific value equivalent
to a barrel of oil.
-------------------------------------------------------
Gas, Natural Gas A natural gas found in contact with or dissolved
or Associated Gas in crude oil in the reservoir. It can be further
categorized as gas cap gas or solution gas.
-------------------------------------------------------
Gross 100% of the reserves and/or resources attributable
to the licence
-------------------------------------------------------
MMCF Million Standard Cubic Feet of natural gas
-------------------------------------------------------
Net Attributable Reserves net to Mosman's Working Interest after
Reserves royalties
-------------------------------------------------------
Proved Developed Developed Reserves that are expected to be recovered
Producing from completion intervals that are open and
producing at the effective date.
-------------------------------------------------------
Proved Developed Reserves that are expected to be recovered from
Behind Pipe zones in existing wells, which will require
additional completion work or future re-completion
before the start of production. In all cases,
production can be initiated or restored with
relatively low expenditure compared to the cost
of drilling and completing a new well including
hook-up to allow production.
-------------------------------------------------------
Probable Reserves Those additional Reserves that analysis of geoscience
and engineering data indicates are less likely
to be recovered than Proved Reserves
-------------------------------------------------------
Proved plus Probable The sum of Proved Reserves plus Probable Reserves
-------------------------------------------------------
Reserves Reserves are those quantities of petroleum anticipated
to be commercially recoverable by application
of development projects to known accumulations
from a given date forward under defined conditions.
-------------------------------------------------------
Royalty A type of entitlement interest in a resource
that is free and clear of the costs and expenses
of development and production to the royalty
interest owner. A royalty is commonly retained
by a resources' owner (lessor/host) when granting
rights to a producer (lessee/contractor) to
develop and produce that resource.
-------------------------------------------------------
SPE PRMS Society of Petroleum Engineers Petroleum Resources
Management System
-------------------------------------------------------
Working Interest An entity's equity interest in a project before
reduction for royalties or production
share owed to others.
-------------------------------------------------------
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