RNS10 Oct 2018 11:48
4 October 2018
Mosman Oil and Gas Limited
(“Mosman” or the “Company”)
Stanley First Sales and Planning of Stanley-2
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, is
pleased to announce an update on the recently drilled Stanley-1 well and other USA projects.
First Sales from Stanley-1
The first sales of production happened in September. The first tanker load was 190 bbls, circa 7 million cubic
feet of gas were sold. This does not represent all the volumes produced, as there is now inventory in the
tanks.
The production from Stanley-1 well continues to be constrained as previously reported. The ratio of liquid
hydrocarbons to gas has varied and this indicates a steady state has not yet been reached.
Stanley-2 Well
Stanley-2 is the next proposed well to be drilled as part of the Strategic Alliance with the privately owned,
Texas based oil and gas company (Baja Oil & Gas, LLC, or “Baja”). The well design by Baja, with input from
Mosman, incorporates information from the Stanley-1 well (which confirmed Baja’s interpretation of 3D seismic
data and provided additional information), integrated with nearby well data and production history.
Baja have now completed the planning for Stanley-2. In accordance with the Joint Operating Agreement, the
owners will receive a formal proposal for the well and each owner then has 15 days to determine whether
they wish to participate or not participate in the Stanley-2 proposed well. If an owner does not wish to
participate then the other owners (including Mosman) may elect to fund that share of the well and therefore
increase their interest in the proposed Stanley-2 well and oil produced from that well. It is anticipated that
drilling will commence in November 2018.
Stanley-2 primary target is the Yegua sands, with other secondary targets.
Mosman has a 16.5% Working Interest in the lease.
Champion and Challenger projects
Mosman has now paid all required funds to Baja and documents will shortly be lodged to transfer the
working interest to Mosman’s USA subsidiary.
Mosman has a 60% Working Interest in Champion Project and 16% Working Interest in the Challenger
Project.
John W Barr, Chairman, said:
“It is extremely pleasing that Stanley-1 has moved to a revenue generating project in a short period of time
since the original investment decision. Following on from this, the Board is keen to move forward with the
drilling of the Stanley-2 Well as quickly as possible, where drilling is expected to start November 2018.”
Competent 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 Engineer
Why was this not shown on here? Is it not relevant information regarding Mosman oil and gas?
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