Mosman Oil and Gas Limited Arkoma: 27% WI with option to increase to 33.3% (6522V)
25 July 2018 - 4:01PM
UK Regulatory
TIDMMSMN
RNS Number : 6522V
Mosman Oil and Gas Limited
25 July 2018
25 July 2018
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Arkoma Stacked Pay Project:
27% Working Interest with option to increase to 33.3%
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, provides the following update
in respect to the Arkoma Stacked Pay Project in Oklahoma.
The development potential is considered to be large as the area
has potential for additional wells to be drilled to produce from
multiple zones. As reported, the operator installed electric
submersible pumps ("ESPs") in two wells to produce simultaneously
from several zones. This was initially disrupted by weather events,
and in July water injection issues. Following upgrade work to water
injection facilities, these wells will be gradually brought on
production. Mosman further reported that it may take some time to
establish steady flow rates.
Mosman is not yet satisfied that steady flow rates have been
established and accordingly has sought and secured an extension of
the exercise date of the second option ("Option") that would
increase the working interest from 27% to 33% of the Inland assets.
Inland has agreed to amend the Option expiry date until 30
September 2018, to allow time for at least 30 days of steady
production, and also for the Arkoma Joint Venture parties to meet
and discuss, among other matters:
-- Field performance including July production results which are not yet available
-- Production optimisation
-- Operator arrangements going forward including a possible operator role for Mosman
-- Field development
-- Budgets
Mosman highlights that it is confident in the project, but until
steady flow rates can be demonstrated over a period of time the
decision to invest further funds must be cautiously approached, and
considered in the context of alternative investments such as Welch
horizontal wells and the development wells available through the
Baja Strategic Alliance, as well as increasing production and
strong oil prices providing strong cash flow.
John W Barr, Chairman, said: "We remain upbeat about Arkoma, but
as a Board we must monitor each project and make decisions based on
the best and most complete information available, and we look
forward to getting the data we need to make that decision as part
of future plans for the Arkoma field."
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 Chairman SP Angel Corporate Finance LLP
Andy Carroll, Technical Director Stuart Gledhill / Richard Hail
jwbarr@mosmanoilandgas.com / Soltan Tagiev
acarroll@mosmanoilandgas.com +44 (0) 20 3470 0470
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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