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(Alliance News) - Mosman Oil & Gas Ltd shares jumped on Monday as it shared the results of a third-party technical report for its license in Australia, and updated on the Cinnabar development well.
Mosman operates oil projects in the US and Australia. The firm said a preliminary evaluation by Geognostics Australia Pty Ltd identified "favourable scenarios" for all three essential play elements that relate to "viable helium and hydrogen plays" in the EP 145 license. EP 145 is a permit 100% owned and operated by Mosman, located in Australia's Northern Territory.
"These components are also present in the Mount Kitty-1 and Magee-1 wells in the Amadeus Basin which flowed helium, hydrogen and hydrocarbons," Mosman noted.
The evaluation identified five "high-graded areas of prospectivity", which includes hydrocarbons, helium and hydrogen. New play concepts were also developed for deeper, basement-derived helium and hydrogen exploration, Mosman said.
Shares in Mosman surged 23% to 0.081 pence in London on Monday morning.
Mosman has estimated the gross respective volumes associated with the Walker Creek Anticline. Its best estimate for prospective gas resources is 440 billion cubic feet, with helium estimated at 26.4 billion cubic feet and hydrogen at 26.4 billion cubic feet.
"The ongoing exploration work programme on EP 145 is to acquire seismic prior to drilling an exploration well. Mosman has applied for the required regulatory and Central Land Council approvals. The CLC has conducted a site survey as a pre-requisite to land access approval for seismic acquisition," Mosman said.
Mosman also said it has completed wireline logging at the Cinnabar development well in Tyler County, Texas, with the casing now run and cemented. Operations are now progressing towards production, the firm said.
"We now look forward to getting this well on production. Our 75% working interest and the performance of nearby wells suggests production from Cinnabar can have a major impact on net production and, at current prices, that would mean a significant increase in both revenue and cashflow," said Chair John Barr.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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