Mosman Oil and Gas Limited Greater Stanley and Falcon Well Update
RNS Number : 4928U
Mosman Oil and Gas Limited
06 April 2021
6 April 2021
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Increase interest in Greater Stanley and Falcon Well Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces an update on its
Greater Stanley Project and Falcon well in East Texas.
Mosman has acquired an additional 20% interest in the Duff
lease, an existing oil producing lease covering 36 acres which
forms part of the Greater Stanley Project, adjacent to the Stanley
Project. This increases Mosman's working interest in Duff to 40%,
following acquisition of the initial 20% in February 2020.
The Operator has proposed a workover to re-complete the Duff-2
well in a zone which has previously been productive at Greater
Stanley and Mosman has agreed to a workover well in order to raise
Mosman's share of the workover (USD20,000) and the acquisition
cost (USD15,000) are being funded out of the Company's existing
Greater Stanley Project
This Project currently comprises two leases, Duff and Kimes.
There is not currently any independent report to quantify resources
or reserves at the Greater Stanley Project. The Duff lease has two
currently producing wells, and produces about 160-180 bbls /month.
Contour Exploration and Production is the operator.
Falcon well update
Despite a 6-day shut in for freezing weather, Falcon produced
12,405 Mcf (gross) of gas with a thermal value of 13,942 MMBtu
(gross) in February 2021. Additionally, 180 Barrels of oil (gross)
were produced and sold from site. This compares to the January
production of 21,805 Mcf (gross) of gas with a thermal value 23,475
MMBtu (gross) and production and sale of 365 Barrels of oil
As previously notified, hydrocarbon production has been
adversely affected since the beginning of March due to increasing
water production which is adversely affecting the economic return
on the well.
The Operator at the Falcon Project, in which Mosman has a 50%
interest, has reviewed the recently acquired production logs, and
has recommended the well be completed in a higher zone.
Production logs identified that the water is flowing through the
well's lowest perforation and thought to be coming from a lower
water bearing zone. The Operator recommends that the JV
re-completes the well in a higher zone with the potential to
possibly return to the current zone later. There are two additional
hydrocarbon bearing sands above the current producing zone. These
two zones have indicated gas pay from wireline logs and have flowed
gas from nearby wells. The recompletion plan would entail squeezing
the current zone with cement and perforating the next zone.
The estimated cost of the workover is USD 20,000 (gross) will be
paid from the existing cashflow from Falcon.
If the JV supports the recommendation the Operator expects to
undertake the workover in the near future.
John W Barr, Chairman, said: "Mosman is pleased to acquire an
additional interest at Greater Stanley which continues the strategy
of building on the core assets of proven conventional oil
production in East Texas.
"At Falcon, whilst the well has been impacted by weather
conditions and the current production is lower than anticipated, we
are encouraged by the proposal from the Operator to recomplete at a
higher level to resolve production."
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
Mosman Oil & Gas Limited John NOMAD and Broker
W Barr, Executive Chairman SP Angel Corporate Finance LLP
Andy Carroll, Technical Director Stuart Gledhill / Richard Hail /
firstname.lastname@example.org Adam Cowl
email@example.com +44 (0) 20 3470 0470
Alma PR Joint Broker
Justine James Monecor (London) Ltd trading as ETX
+44 (0) 20 3405 0205 Capital Thomas Smith
+44 (0) 7525 324431 020 7392 1432
Updates on the Company's activities are regularly posted on its
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(END) Dow Jones Newswires
April 06, 2021 05:52 ET (09:52 GMT)