Mosman Oil and Gas Limited Acquisition of assets in USA & Stanley 4 update (3734E)
27 February 2020 - 10:58PM
UK Regulatory
TIDMMSMN
RNS Number : 3734E
Mosman Oil and Gas Limited
27 February 2020
27 February 2020
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Acquisition of assets in USA
Stanley 4 update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, is pleased to announce that it
has agreed the acquisition of interests in two leases in Texas, USA
as the first step to expanding on the success of the Stanley
project.
Greater Stanley
Mosman and its Strategic Alliance partner, Baja Oil and Gas LLC
("Baja"), have for some time worked to identify additional
locations where the successful 3D Seismic led approach adopted at
Stanley could be repeated and further commercial success obtained.
This business development project is to be called "Greater
Stanley".
This first acquisition of additional acreage is an existing oil
producing lease "Greater Stanley 1" covering circa 36 acres and
situated near the existing Stanley Project, where Mosman has
participated in 3 wells. Acquisition of this lease will enable
application of the technical work that has been successful at the
Stanley wells. The Greater Stanley 1 lease is currently producing
circa 6 bopd from two wells completed in the Sparta zone. The key
benefit of the acquisition is the potential to apply the technical
work successful at the Stanley wells to increase production from
this lease. This may include re-entry and re-completion of one or
both of the existing wells, or the drilling of new wells. The terms
have been agreed and the transaction is subject to completion and
registration.
The second acquisition is an adjacent lease circa 35 acre lease
with no wells , "Greater Stanley 2". This area is being leased
directly from landowners. Baja has been managing the acquisition
process and Mosman expects to acquire at least a 25% working
interest in that lease as part of that process.
The next step for the Greater Stanley Area is detailed technical
work to determine the way forward, that may include drilling a well
later in 2020.
The total cost to Mosman of the two acquisitions is circa
USD30,000. Mosman's Strategic Partner Baja is also acquiring an
interest in both acquisitions and will become the Operator of both
leases.
Neither acquisition currently has any associated reserves or
resources attributable to them.
Both acquisitions remain subject to agreeing final documentation
and associated conditions precedent and are being funded out of the
Company's existing cash resources.
Stanley-4 update
Mosman has been advised that site preparation work is
continuing. The decision has been made to upgrade the access road
to site and as a result Stanley-4 is now expected to be drilled in
March 2020.
John W Barr, Chairman, said: "Mosman is pleased to provide
tangible evidence of the benefit of its investment in business
development work with Baja to increase Mosman's interests in Texas.
The Greater Stanley area will enable additional activity aimed at
increasing production."
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
Alma PR Joint Broker
Justine James Monecor (London) Ltd trading as
+44 (0) 20 3405 0205 ETX Capital
+44 (0) 7525 324431 Thomas Smith
mosman@almapr.co.uk 020 7392 1432
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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