Mosman Oil and Gas Limited Winters Lease and Winters-2 well update (0637F)
July 13 2021 - 4:00AM
UK Regulatory
TIDMMSMN
RNS Number : 0637F
Mosman Oil and Gas Limited
13 July 2021
13 July 2021
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Winters Lease and Winters-2 well update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development, and production company, announces an update on the
Winters lease in Polk County, East Texas including increasing its
Working Interest in the lease and the timing of drilling the
Winters-2 well.
Winters Lease
Mosman acquired a 23% interest in the Winters lease as part of
its recent purchase of Nadsoilco LLC, ("Nadsoilco") in June 2021.
Nadsoilco is now a subsidiary of Mosman and is the Operator of the
Winters lease. The Winters lease is held by production with circa
969 bbls of oil sold in the last 12 months from the Winters 1
well.
Mosman has now agreed to farm-in to acquire an additional 6%
working interest in the Winters lease. The key terms are payment of
US$12,000 for past costs, and Mosman to pay 8% of the next well
costs. This will increase Mosman's interest in the lease (including
the Winters-1 well) from c23% to c29% (before royalties).
Winters-2 well
Nadsoilco is now preparing to drill the Winters-2 well on the
Winters Lease. Due to the well location, the Winters lease holders
have agreed to share the participation in the Winters-2 well (not
the lease) with the adjacent lease holder ("Arcadia"). The Winters
lease holders will have 78% and Arcadia will have 22% of the well.
Therefore, Nadsoilco will have a c29% x c78% = c23% working
interest in this well.
Winters-2 is a development well targeting the Wilcox formation,
the same zone that is producing in adjacent wells (on other leases
not held by Mosman). The well will be drilled as soon as site
preparation has been completed, and the drilling rig is available,
which Mosman anticipates will be in a few weeks' time. The Budget
to drill and case the Winters-2 well has been set at
cUSD600,000.
Funding of the farm-in and the drilling costs of c USD 150,000
will be from existing cash resources. A positive drill result, in
line with an existing adjacent well which is producing at
c190bopd,should result in the well costs being recovered from
production this calendar year.
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
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 inside is now considered to be in
the public domain.
Enquiries:
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 /
jwbarr@mosmanoilandgas.com Adam Cowl
acarroll@mosmanoilandgas.com +44 (0) 20 3470 0470
Alma PR Joint Broker
Justine James / Joe Pederzolli Monecor (London) Ltd trading as ETX
+44 (0) 20 3405 0205 Capital Thomas Smith
+44 (0) 7525 324431 020 7392 1432
mosman@almapr.co.uk
Updates on the Company's activities are regularly posted on its
website:
www.mosmanoilandgas.com
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