TIDMMSMN
RNS Number : 4015P
Mosman Oil and Gas Limited
17 February 2021
17 February 2021
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Operations update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces an update on
operations in the US.
Stanley
The Operator has recently recompleted Stanley-1 in a zone that
has been productive in Stanley-2, and initial flow rates (3 day
average) are 47 bopd gross. The Company will provide a further
update in due course once production rates have stabilised at
Stanley-1.
Stanley-2, 3 and 4 continue to produce oil, with a total project
production (including Stanley 1) of circa 260 bopd (3 day average)
gross. Mosman has 16-18% working interest in these wells. Water
production is managed by on-site water injection that has not been
affected by recent unusual cold weather conditions.
Falcon
Minor equipment upgrades have been installed at the Falcon-1
well. The well has been temporarily shut-in since 15 February due
to the weather conditions, to avoid water vapour freezing in the
gas lines. Oil production and produced water is stored in tanks and
has to be trucked off site. The Operator expects to have the well
back on production once freezing conditions end, which are forecast
to improve and warm up on Saturday. Mosman has 50% working interest
in this well. Further updates will be provided in due course.
Other Production
The majority of current production comes from the Stanley and
Falcon projects. Mosman has not been advised of any effect of the
weather on other facilities such as Greater Stanley and Arkoma.
Drilling opportunities
Mosman confirms its intention to participate in the drilling of
multiple wells in the 2021 year.
The candidates for drilling include wells at the Stanley project
(where four wells have already been drilled with a 100% drilling
success rate) and other wells in East Texas, including wells at
Greater Stanley, Cinnabar and Galaxie. Of these projects, Mosman
only has control of the timing of operations where it is the
Operator, at the Cinnabar lease.
The Cinnabar lease acquisition is considered a potential
cornerstone of the Challenger Project to re-develop the proven oil
producing area. Mosman has 97% working interest (reducing to 85%
upon drilling of the first well) in the Cinnabar lease and is the
Operator. The initial review of existing data has led Mosman to
commit to a full field redevelopment study that will be based on
technical work which includes the following:
-- Acquiring additional seismic data
-- Reprocessing the seismic data
-- Revised geological model
-- Acquiring additional leases
-- Identifying optimal drilling locations
-- Designing wells
-- Drilling planning
The successful drilling of Falcon-1 means there are several
prospects to be drilled in the Falcon and Galaxie lease area
(Champion Project). The Falcon-1 well production data will be used
to estimate the size of that gas field, and to update the
geological model, before a decision is made where to drill the next
well in the Champion Project. Mosman has 50% interest in the Falcon
lease and 60% working interest in the Galaxie lease.
There are several potential wells in the Greater Stanley area
that require further work before being ready to drill. The work
includes leasing, gaining well spacing approval and technical work
to determine optimal target locations. The zone that is producing
at Stanley-1 and 2 is thought to extend in to the Duff lease, and
is a candidate for recompletion of the Duff-2 well. Mosman has 20%
working interest in the Duff lease.
John W Barr, Chairman, said: "Mosman appreciates the work and
effort that is involved in getting a project completed and
maintaining solid production. Presently, the Covid pandemic, heavy
rain and this severe cold weather are examples of reasons why
things sometimes take longer than anticipated.
"For the moment, the safety of people, and the operations is
imperative. Hopefully, normality will return shortly, along with
communications that have been difficult due to rolling power
blackouts."
Qualified 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 Joint 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 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 +44 (0) 20 7392 1432
Updates on the Company's activities are regularly posted on its
website: www.mosmanoilandgas.com
Technical Glossary
BBLs or bbls Barrels
BOPD or bopd barrels of oil per day
===============================================
BOEPD or boepd barrels of oil equivalent per day calculated
on the approximate 1:6 basis of the calorific
value of the hydrocarbons, (not based
on the price)
===============================================
MMCFPD or mmcfd Million cubic feet per day
MMBTU
Million British Thermal Units
===============================================
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END
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