TIDMMSMN
RNS Number : 9077H
Mosman Oil and Gas Limited
13 June 2017
13 June 2017
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Corporate Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces an update in respect
to its current operations.
Mosman's strategic objective as part of its growth strategy
remains to identify opportunities which will provide operating cash
flow and have further development upside, in conjunction with
adding value to the existing exploration permits.
USA
Mosman has now completed the acquisition of 50% of the Strawn
Oil Project in Texas ('Strawn') and the initial 10% of the Arkoma
Stacked Pay Acquisition in Oklahoma ('Arkoma'). These are the first
acquisitions to complete and as stated, the Company continues to
evaluate other opportunities as part of Mosman's growth
strategy.
Strawn: 50% interest
At Strawn, Mosman's subsidiary, Mosman Operating LLC has now
been appointed and registered as the official operator.
The Company's plan remains to achieve increased production and
cash flow. Free cash flow will continue to be re-invested with a
view to further increasing production.
Initial short term work has now been completed, including road
improvements and pump jack repairs. Additionally, operational,
health & safety and other site obligations have been identified
which Mosman is working on to make further improvements.
The next phase is to implement workovers. There are some 27
wells on the leases and each has been or is currently being
reviewed with a strong emphasis on production increases. The
workover programme on existing shut-in production wells is now
planned to start next week.
At the end of May, 496 barrels of oil was collected and sold
from the project (Mosman 50%). This includes some initial inventory
as well as oil produced from 1 April 2017 (being the effective date
of the acquisition).
In addition to the current work programme, historic technical
data has been collected from the previous owner and will be used to
identify additional opportunities that offer development upside
potential.
Arkoma: 10% interest with an option over a further 45%
At Arkoma Stack Pay project in Oklahoma, first revenue from
production is expected to be credited to Mosman in June.
Importantly, Inland Operating Company (the operator), has
advised that work on several wells is progressing and an update
will be provided once the results become available in the next few
weeks.
Mosman is pleased to see that demonstrable progress is being
made at Arkoma in the last month by the Operator which is in line
with Mosman's expectations.
Mosman has engaged Moyes and Co to produce an independent third
party Reserves Report at Arkoma, which is scheduled to be completed
later this month.
AUSTRALIA
Amadeus Basin Permits
Mosman owns and operates two granted permits (EP 145 & 156)
and one application (EPA 155).
The Northern Gas Pipeline ("NGP") that has commenced
construction, and from 2018 will provide access for Northern
Territory gas to markets in Eastern Australia, is progressing with
award of contracts and delivery of steel pipe.
-- In EP 156: the airborne survey (that was delayed due to
weather) was flown over 6 days between 29th May and 3rd June. A
total of 8,116 line kms were acquired. The next step is to
interpret the data and update the geological model.
-- In EP145: the fieldwork programme was completed some time ago
but, unfortunately, the key consultant has been ill and the report
is still being finalised.
-- IN EP155: the next step in is to obtain native title
approval, with a site visit scheduled for later this year.
NEW ZEALAND
Murchison
Mosman remains in discussions with NZPAM regarding the timing of
the planned work programme, and the requested Change of Conditions
for the permit.
Mosman continues to actively pursue farm-in investment to fund
drilling. Marketing of the farm-in is currently being conducted
through industry consultants and a media agency that works with
NZPAM and other companies in NZ.
Petroleum Creek
Planning continues for the three wells drilled to be plugged and
abandoned. It is expected that a suitable rig will be available in
the September quarter to complete the tasks.
Competent 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
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Enquiries:
Mosman Oil & Gas Limited NOMAD and Broker
John W Barr, Executive SP Angel Corporate Finance
Chairman LLP
Andy Carroll, Technical Stuart Gledhill / Richard
Director Hail
jwbarr@mosmanoilandgas.com +44 (0) 20 3470 0470
acarroll@mosmanoilandgas.com
Gable Communications Limited
Justine James / John Bick
+44 (0) 20 7193 7463
mosman@gablecommunications.com
Updates on the Company's activities are regularly posted on its
website
www.mosmanoilandgas.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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