TIDMMSMN
RNS Number : 5700X
Mosman Oil and Gas Limited
26 April 2023
26 April 2023
Mosman Oil and Gas Limited
("Mosman" or the "Company")
93% Increase in Quarterly Net Production
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development, and production company, announces its Q3 production
update for the three months ended 31 March 2023 ("Q3" or "March
Quarter") delivering a 93% increase in net production compared to
the prior December Quarter.
US Production (Various interests)
Mosman made significant progress in growing the production
portfolio as a result of the Cinnabar-1 well (Mosman 75% working
interest) coming on production. Improved production at Stanley and
Winters contributed to the growth in the quarter in which Mosman
achieved net production of 11,960 boe (circa 133 boepd) versus
6,212 boe (c. 67 boepd) in the prior December Quarter.
March Quarter Production Summary
3 Months to 3 Months to
31 March 2023 31 December 2022
boe boe
=============================== ===============================
Gross Project Net Production Gross Project Net Production
Production to Mosman Production to Mosman
============== =============== ============== ===============
Gross boe Net boe Gross boe Net boe
============== =============== ============== ===============
Cinnabar 6,690 5,017 - -
============== =============== ============== ===============
Stanley 13,753 5,028 12,943 4,897
============== =============== ============== ===============
Winters 6,324 1,476 3,431 800
============== =============== ============== ===============
Livingston 535 107 1,238 248
============== =============== ============== ===============
Arkoma 1330 332 1,070 267
============== =============== ============== ===============
Total boe 28,632 11,960 18,682 6,212
============== =============== ============== ===============
Net Production of 11,960 boe comprised of 9,908 barrels of oil
and 11,902 MMBtu of gas. The average sale prices achieved during
the period was US$73.46 per barrel for oil and US$3.49 per MMBtu
for gas (December quarter was US$82.02 and US$5.69 respectively,
and in each case after transport and processing costs but before
royalties).
Production numbers in the Quarter are based on the current best
available data (including field data if necessary) and are subject
to adjustment upon receipt of final sales invoices from the
purchasers of products.
Major Project Updates
Cinnabar (75% Working Interest)
The Cinnabar-1 well was put on production at the end of December
2022 and produced throughout the March Quarter.
Gas infrastructure has been upgraded and a connection to the
sales gas pipeline is under way that will enable gas to be sold.
Current production numbers do not include gas.
During the period, formation water influx increased and this
caused a decrease in oil production to c50 bopd during April.
Wireline logs indicated that the oil and gas production was coming
from the 1st Wilcox and water was coming from one 2nd Wilcox sand
that had also been perforated. A workover was successfully
completed on 25 April setting a plug to seal off the 2(nd) Wilcox
zone. Production from the 1st Wilcox is expected to be restarted
during 26 April and updated flow rates will be reported in due
course. At some time in the future, the 2(nd) Wilcox will be
squeeze cemented to seal off the source of the water and
re-perforated in a different 2(nd) Wilcox sands to produce the
significant Reserves identified in the 2(nd) Wilcox. In addition,
in due course artificial lift may be used to increase flow
rates.
At G-2, a workover was performed to enable gas injection. Gas
from Cinnabar-1 was injected and this led to the well flowing,
demonstrating proof of concept. The next step is to inject gas at a
high enough pressure to initiate gas lift. This will require the
acquisition and installation of a gas compressor.
Technical work is being undertaken in order to prepare a
Development Plan for the Cinnabar lease. This work will include
updates of the 3D seismic interpretation on the lease and the
geological model and result in the identification of drilling
targets and locations. The Development Plan is expected to take
several months to complete.
Stanley (34.85% to 38.5% Working Interest)
Stanley benefitted from the completion of gas infrastructure and
workovers to optimise production. The gas lift on Stanley 4 and 5
was successful, with several days producing approximately 300 bopd.
However, due to decline in available gas the decision was made to
change to fluid injection and install jet pumps in these wells. The
recent aggregate daily gross production rate across Stanley is 154
bopd (averaged over the last 5 days of available data).
In addition to production optimisation work, a technical report
was also completed that detailed significant remaining production
potential in the Stanley leases.
Winters (23% Winters-2 Working Interest)
Winters-2 continues to produce at rates exhibiting natural
decline.
Cash position
As at 31 March 2023, Mosman had cash at bank of circa AU$682k,
which does not include the additional GBP300,000 raised per the
announcement on 6 April 2023.
John W Barr, Chairman, said: "We are pleased to report on the
progress we have made as a result of the development work enabling
us to deliver a significant quarter on quarter increase in
production."
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 NOMAD and Broker
John 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
Justine James
+44 (0) 20 3405 0205
+44 (0) 7525 324431
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
boe Barrels of oil equivalent based on calorific value as
opposed to dollar value
boepd Barrels of oil per day of oil equivalent based on calorific
value as opposed to dollar value
--------------------------------------------------------------
bo Barrels of oil
--------------------------------------------------------------
bopd Barrels of oil per day
--------------------------------------------------------------
Gross Project Means the production of boe at a total project level
Production (100% basis) before royalties (where Mosman is the Operator)
and where Mosman is not the operator the total gross
production for the project
--------------------------------------------------------------
Mcf Thousand cubic feet
--------------------------------------------------------------
Mcfpd Thousand cubic feet per day
--------------------------------------------------------------
MBtu One thousand British Thermal Units
--------------------------------------------------------------
MBtupd One thousand British Thermal Units per day
--------------------------------------------------------------
MMBtu One million British Thermal Units
--------------------------------------------------------------
MMBtupd One million British Thermal Units per day
--------------------------------------------------------------
Net Production Net to Mosman's Working Interest; Net Production attributable
to Mosman means net to Mosman's Working Interest before
royalties
--------------------------------------------------------------
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END
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