TIDMMSMN
RNS Number : 0852J
Mosman Oil and Gas Limited
11 August 2023
11 August 2023
Mosman Oil and Gas Limited
("Mosman" or the "Company")
USA Production & Development Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil and gas
exploration, development, and production company, announces its
production for the year ended 30 June 2023 ("FY23"), and an update
on development in the USA.
Production
-- FY23 Net Production of 31,067 boe (FY22: 37,915 boe). 2023
was impacted by the halt in production at Falcon due to water
ingress. Whilst there is remaining potential at Falcon, the lower
gas prices meant a workover is not a high-ranking investment
alternative.
-- Achieved 73% annual increase in production at Stanley with
installation of gas lift and jet pumps.
-- Production for the June 2023 quarter was 15,332 boe gross and
5,937 boe net. Production was materially lower than the March
quarter (28,632 boe gross, 11,960 boe net) mainly due to issues at
Cinnabar as well as increased sand production issues requiring
additional screens and clean outs at Stanley. Some wells may be
optimised by changing back to gas lift.
-- Work continues at the Cinnabar project to optimise production
on all three existing wells on the lease and planning for drilling
the next development well (that is subject to funding). At G-2, the
well has been serviced and a fracture stimulation is expected to be
conducted in the week commencing 13 August 2023.
John W Barr, Chairman, said: "The Company continues to develop
and maintain its portfolio of projects, with a clear focus on its
strategic plan to maximise the opportunity for further production
growth and increasing cashflow. Whilst we are disappointed with the
outcome at Falcon, the resolution of sand issues at Stanley and
currently happening workovers at Cinnabar may deliver a more
sustainable growth in production."
USA Production
Net Production attributable to Mosman for the year ended 30 June
2023 was 31,067 boe. The decrease was primarily due to the
production halting at Falcon, which was somewhat offset by
increased production at Stanley and new production at Cinnabar.
Production Summary
Gross Project Net Production Gross Project Net Production
Production to Production to
Mosman Mosman
============= ============== ============= ==============
Falcon - - 29,114 21,836
============= ============== ============= ==============
Stanley 44,915 16,844 26,212 9,746
============= ============== ============= ==============
Cinnabar 8,465 6,349 - -
============= ============== ============= ==============
Livingston 2,654 531 1,530 306
============= ============== ============= ==============
Winters 22,733 5,304 14,726 3,456
============= ============== ============= ==============
Arkoma 8,166 2,039 10,294 2,571
============= ============== ============= ==============
Total 86,933 31,067 81,876 37,915
============= ============== ============= ==============
The Net Production of 31,067 boe produced in the FY23 consisted
of 21,503 barrels of oil and 55,474 MMBtu of gas.
For the June quarter, net production was 5,937 boe and consisted
of 4,845 barrels of oil and 6,331 MMBtu of gas. The average sale
prices achieved during the June 2023 quarter was US$73.02 per
barrel for oil and US$1.70 per MMBtu for gas. (March quarter was
US$73.46 and US$3.49) (in each case after transport and processing
costs but before royalties).
Gross Production Net Production Gross Production Net Production
to Mosman to Mosman
================ ============== ================ ==============
Stanley 9,949 3,744 13,753 5,028
================ ============== ================ ==============
Cinnabar 1,775 1,332 6,690 5,017
================ ============== ================ ==============
Livingston 350 70 535 107
================ ============== ================ ==============
Winters 1,334 311 6,324 1,476
================ ============== ================ ==============
Arkoma 1,924 480 1,330 332
================ ============== ================ ==============
Total 15,332 5,937 28,632 11,960
================ ============== ================ ==============
Stanley (34.85% to 38.5% Working Interests)
Whilst production at Stanley was lower in the quarter, annual
production increased 73%.
Jet pumps were installed on three wells that increased
production, however that also increased operating costs and sand
production. The optimal production method for each well is being
reviewed and it may be that some wells are returned to gas
lift.
A seismic mapping project has recently been completed detailing
significant remaining potential in the Stanley leases.
Winters-2 continues to produce both gas and oil with the help of
gas lift.
Cinnabar Project (75% Working Interest)
At Cinnabar, production was down as advised. Mosman has
completed a detailed development plan for the lease which now in
theory has three wells with the ability to produce, and each well
has produced some oil which is included in the quarterly numbers of
gross 1,775 boe. The plan is gradually being implemented with
recently installed gas infrastructure currently being used to
enable gas lift, and work continues to optimise production on the
three existing wells, including the frac of one zone at Cinnabar-2
which is planned in the week commencing 13 August 2023.
Production numbers are based on the current best available data
and are subject to adjustment upon receipt of final sales invoices
from the purchasers of products.
Cash position
At 31 July 2023, Mosman had cash at bank of circa AU$0.8
million.
Funds raised in the July and April placings have been and
continue to be expended as follows:
1. Mosman's share of the connection fee to connect the Cinnabar
Project gas flowline;
2. Costs associated with the Corporate Review;
3. Applications, documentation, and fees related to approvals
for seismic acquisition in EP 145 as well as management activities
including soil and water sampling for hydrogen and helium and
Central Land Council annual fees;
4. Additional investment at Cinnabar to provide gas lift to
optimise production at existing wells;
5. Additional costs of workovers and stimulation to optimise
production at Cinnabar wells; and
6. Expenditure related to the new lease area near Cinnabar
including lease costs and technical work to identify preferred
drilling locations.
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 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 CMC Markets UK Plc
+44 (0) 20 3405 0205 Douglas Crippen
+44 (0) 7525 324431 +44 (0) 020 3003 8632
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 its existing
exploration permit and permit application. 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
-------------------------------------------------------------
bopd Barrels of oil per day
-------------------------------------------------------------
Gross Project Means the production of BOE at a total project level (100%
Production 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
UPDUAAWROBUWARR
(END) Dow Jones Newswires
August 11, 2023 04:20 ET (08:20 GMT)
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