Mosman Oil and Gas Limited Stanley First Sales and Planning of Stanley-2 (9560C)
04 October 2018 - 4:52PM
UK Regulatory
TIDMMSMN
RNS Number : 9560C
Mosman Oil and Gas Limited
04 October 2018
4 October 2018
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Stanley First Sales and Planning of Stanley-2
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, is pleased to announce an
update on the recently drilled Stanley-1 well and other USA
projects.
First Sales from Stanley-1
The first sales of production happened in September. The first
tanker load was 190 bbls, circa 7 million cubic feet of gas were
sold. This does not represent all the volumes produced, as there is
now inventory in the tanks.
The production from Stanley-1 well continues to be constrained
as previously reported. The ratio of liquid hydrocarbons to gas has
varied and this indicates a steady state has not yet been
reached.
Stanley-2 Well
Stanley-2 is the next proposed well to be drilled as part of the
Strategic Alliance with the privately owned, Texas based oil and
gas company (Baja Oil & Gas, LLC, or "Baja"). The well design
by Baja, with input from Mosman, incorporates information from the
Stanley-1 well (which confirmed Baja's interpretation of 3D seismic
data and provided additional information), integrated with nearby
well data and production history.
Baja have now completed the planning for Stanley-2. In
accordance with the Joint Operating Agreement, the owners will
receive a formal proposal for the well and each owner then has 15
days to determine whether they wish to participate or not
participate in the Stanley-2 proposed well. If an owner does not
wish to participate then the other owners (including Mosman) may
elect to fund that share of the well and therefore increase their
interest in the proposed Stanley-2 well and oil produced from that
well. It is anticipated that drilling will commence in November
2018.
Stanley-2 primary target is the Yegua sands, with other
secondary targets.
Mosman has a 16.5% Working Interest in the lease.
Champion and Challenger projects
Mosman has now paid all required funds to Baja and documents
will shortly be lodged to transfer the working interest to Mosman's
USA subsidiary.
Mosman has a 60% Working Interest in Champion Project and 16%
Working Interest in the Challenger Project.
John W Barr, Chairman, said:
"It is extremely pleasing that Stanley-1 has moved to a revenue
generating project in a short period of time since the original
investment decision. Following on from this, the Board is keen to
move forward with the drilling of the Stanley-2 Well as quickly as
possible, where drilling is expected to start November 2018."
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 Joint Broker
Justine James / John Bick SVS Securities Plc
+44 (0) 20 7193 7463 Tom Curran / Ben Tadd
mosman@gablecommunications.com +44 (0) 203 700 0078
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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