The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
RNS out: https://www.lse.co.uk/rns/MSMN/sacred-site-clearance-certificate-for-ep-145-ssfy3mhs9ylu983.html
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, confirms that it has now received a Sacred Site Clearance Certificate for EP 145, situated in the Amadeus Basin, from the Central Land Council (CLC).
The Amadeus Basin is considered one of the most prospective onshore areas in the Northern Territory of Australia for both conventional and unconventional oil and gas, as well as Helium and Hydrogen. The basin already hosts the producing Mereenie, Palm Valley and Surprise fields.
John W Barr, Chairman, said: "The Sacred Site Clearance Certificate from the CLC is a major forward step in securing several approvals for our seismic programme exploring the permit. Now that we have received the Certificate other approvals can be progressed and work will then commence."
New video with JB: https://www.youtube.com/watch?v=0uey6ILrXEE
Hoping for new reserves report in the next two weeks - the old report suggested 1m barrels and thinks we have increased that number.
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces a £1.1 million conditional placing to fund the drilling of the first re-development well in the Challenger Project in Texas, of which Mosman has a 97% working interest.
If the targeted production rates are achieved, Mosman Net Production could increase 88% from 130 boepd (as reported for quarter ending March 31, 2022) to circa 245 boepd.
Placing
In order to fund the planned drilling and anticipated completion costs at Cinnabar, the Company has raised £1.1m (before expenses) by way of a placing of 1,375,000,000 new ordinary shares of no par value in the capital of the Company ("Placing Shares") through the company's broker Monecor (London) Ltd, trading as ETX Capital, at a placing price of 0.08p per share (the "Placing Price") (the "Placing"). Investors are also receiving a one for two warrant exercisable at a price of 0.16p with a term of 24 months, 687,500,000 warrants are being issued in aggregate (the "Placing Warrants").
Based on current production rates and current oil and gas prices the Company is currently operating above cashflow breakeven (not including major capital costs such as EP145 seismic, larger workovers that are not yet planned, and other potential drilling at Cinnabar if the first well is a commercial success).
That situation will be further improved with a successful well at Cinnabar.
This means that the Placing will allow for the drilling and development at Cinnabar and, based on a successful well, is expected to provide sufficient working capital for the next 12 months.
John W Barr, Chairman, said: "Mosman is very pleased to report a 65% uplift in net production despite a temporary disruption at Arkoma. The completion of gas infrastructure at Stanley/Winters in East Texas is a significant milestone, which opens up development potential and benefits revenue, especially with current strong gas prices. We continue to make steady progress and are increasing production, with significant further development potential in existing leases.
"In Australia, we are well positioned to take advantage of the increasing demand for Helium and Hydrogen, in addition to Oil and Gas, through our two exploration areas and are excited to see the opportunities that these projects will deliver in the medium term."
Net Production attributable to Mosman before royalties for the six months to 31 December 2021 was 17,344 boe, an increase of 5,201 boe, or 43% compared to the six months to June 2021 of 12,143 boe. This is despite the operational issues experienced in December that reduced the production in the 3 months to 31 December 2021. This progress reflects the uplift in production from growth of existing projects, the acquisition of Nadsoilco LLC and an increased interest in Falcon.
And worth noting... It does not reflect recent increases in production at Falcon which occurred after 31 December 2021 and does not include the Winters-2 well which was drilled in November and was recently recompleted and flowed gas. It also only includes minor production from Stanley-5.
Half Year Results
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, announces its Half Year results to 31 December 2021, a period in which it significantly increased oil and gas production across its US projects.
Summary
· Revenue increased 95% to AUD 745,790 (compared to AUD $383,138 in the six months ending 30 June 2021)
· Gross Profit increased 232% to AUD188,487 (compared to AUD $56,828 in the six months ending 30 June 2021)
· Net loss narrowed to AUD 498,940 (compared to AUD $708,822 in the six months ending 30 June 2021)
· Net Production to Mosman increased 43% to 17,344 BOE
· Completed acquisition of Nadsoilco increasing working interest in Stanley Project, Livingston and Winters leases and became operator of these leases, providing more day to day control
· Acquired additional working interests in Falcon-1 and Cinnabar in East Texas. Completed 3D seismic reprocessing and interpretation and identified potential development drilling locations with multiple Wilcox sand targets at Cinnabar.
Post Period end
· Completed the construction of a gas network in East Texas in February, enabling the sale of gas from Winters-2 and Stanley-4 and enabling ongoing production optimisation.
· 12 month extension of EP-145 in Australia secured and an on-site environmental survey completed.
John W Barr, Chairman of Mosman commented: "We remain focussed on delivering on our strategic objectives to build oil and gas production and development upside, delivering solid progress on this objective through the acquisition of Nadsoilco and additional working interests at Falcon-1 and Cinnabar in East Texas.
"Good progress was made across our development projects, increasing production. Revenues have benefitted from the increasing oil and gas prices, which remain very strong. We have identified potential drilling locations to target further increases in production."
Amadeus Basin EP-145 Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces the completion of the on-site portion of the Environmental Survey at EP-145, located in the Amadeus Basin in the Northern Territory, Australia.
The Environmental Survey was completed on schedule and initial results have been received. The next step is the receipt of the final report and submission to the NT government.
This Environmental Survey was one of the pre-requisites to seismic acquisition. The other pre-requisite is approval for acquisition from organisations representing native title parties.
Representatives from the Company will be travelling to Alice Springs in April to meet with the Central Land Council ('CLC') and to attend the annual technical conference.
John W Barr, Chairman, said: "Mosman is pleased to achieve the next step in the approval process at EP-145 and is following up on the outstanding final reports with vigor.
"The Amadeus Basin is considered an important asset with considerable exploration upside which needs ongoing work to prove the concepts and resources."
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces initial production from the Winters-2 well in East Texas.
The initial flow rate is circa 545 thousand cubic feet per day (mcfpd), which is circa 105 barrels of oil equivalent per day (boepd). This well and equipment will be monitored, and the initial rate may be adjusted in due course. Mosman has c23% working interest ('WI') in Winters-2.
The new production will add significantly to the average daily gross production which was 164 boepd in the December 2021 quarter.
Onsite focus has now moved to establishing production from Stanley-4 (Mosman 36.5% WI). Production rates from that well will be announced shortly.
John W Barr, Chairman, said: "Mosman is pleased to see that following completion of gas infrastructure, enabling gas production from the Winters and Stanley leases, this initial flow rate is an excellent starting point and we look forward to continuing to build our production base."
WTI now at $116
WTI at $104 at the moment and suggestions prices could go higher still
https://oilprice.com/Energy/Oil-Prices/Goldman-Oil-Markets-Havent-Fully-Priced-In-Geopolitical-Risk-Premium.html
CLC Permit Issued for EP-145 Environmental Survey
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, is pleased to announce an update on EP-145 located in the Amadeus Basin, Northern Territory of Australia, which is prospective for oil and gas, hydrogen and helium.
On 25 February, the Central Land Council ("CLC") issued a Permit and Authority to enter and remain on Aboriginal Land and/or Community Living Areas for the area which is covered by EP-145 (the "CLC Permit").
The CLC Permit for four months will allow Mosman to undertake an environmental survey which is required prior to the planned 2-D seismic acquisition programme.
This enables Mosman to proceed with the environmental survey which is scheduled to be completed in March 2022.
John W Barr, Chairman, said: "Mosman is pleased to secure the CLC Permit on EP-145 now enabling the environmental survey to proceed. This survey and a CLC heritage clearance survey are the only on-site survey requirements prior to the seismic acquisition.
"Interpretation of the resulting seismic will be important in assisting Mosman to refine further our technical understanding of the sub surface structures and identify future drilling locations in EP-145 which is prospective for oil and gas, hydrogen and helium."
Not sure if the Q&As from the AGM have been posted already - if not here they are: https://www.mosmanoilandgas.com/sites/default/files/MSMN%20-%20AGM%20QA%20-%20Feb%202022%20-%20final%20comments%20SPA.pdf
https://oilprice.com/Energy/Energy-General/How-A-Helium-Shortage-Could-Crash-The-Internet.html
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update in respect of its Falcon project which forms part of the Champion Project in East Texas. Mosman holds a 75% working interest in the Falcon-1 well, the first well to be drilled at the project.
At Falcon-1, an additional Frio sand zone has been perforated at a depth 7,457-7,460 feet. The well has flowed on test at a rate of 1,000 mcfd, but due to the current choke size of 7/64 it has been producing at an average rate over the last 5 days of 576 mcfd (c 113 boepd gross). To balance short term cashflow and long optimize gas recovery over time, the production strategy is to periodically increase the choke size and monitor wellhead pressures. The first increase in choke size planned for this this week is to increase the choke to 8/64.
The current production rate is an increase of 23% compared to average flow rate of c 92 boepd (gross) in the quarter ended 30 September 2021.
John W Barr, Chairman, said: "Mosman is making steady progress to meet our growth objectives, with another strong step forward with this strong increase in production at Falcon."
The costs of the recompletion were paid from existing cash reserves. The current cash position is c AUD 1 million.
Production numbers for the six months ending 31 December should be available in the next month, once all information has been received.
Mosman is awaiting results from recent drilling and other workovers. This information will be published when it is available.
Winters-2 and Stanley-5 Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update on the Winters-2 and Stanley-5 wells in Polk County, East Texas.
The Winters-2 well was perforated from 6,788 to 6,808 feet. The well was swabbed on the morning of Friday 5 November and started to flow gas, oil and water. On Monday 8 November, the well was again swabbed and well testing on Tuesday 9 November from 11.00 to 16.00 flowed 48 to 96 thousand cubic feet of gas per day (Mcfgpd) of gas, minor amounts of oil and 240-480 barrels per day of water. The well is currently shut-in to measure pressure build up. This Wilcox zone will be flow tested again tomorrow. Note that nearby wells have seen oil production increase in the first days of flowing. If the oil rate does not increase, then the well may be re-completed in another zone. There are several other potential production zones identified on logs with potential pay having been identified in other Wilcox sands.
Stanley-5 is waiting on the delivery of required equipment, expected next week, before being put on production.
Further updates will be provided as appropriate.
Stanley-5 Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update on the Stanley-5 well in Polk County, East Texas.
Stanley-5 has been drilled to the target depth, logged and cased. Several Yegua sands from 4200-4800 feet have been identified as oil bearing from logs and sidewall cores. The well be completed for production and flow rates will be published when available.
Commenting on progress, John W Barr, Chairman, said: "This fifth successful well at Stanley is the next step to building on our delivery against the strategic objective to increase production, in addition to the recent successful wells drilled at Falcon and Winters.
"The combination of these developments, increased equity at our Stanley and Falcon projects and the much stronger oil and gas sales prices, means increased revenues and growth. The higher prices should also increase the potential value of the Cinnabar redevelopment project, where technical work continues to identify drilling locations."
Stanley-5 well update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update on the Stanley-5 well in Polk County, East Texas.
The well is now scheduled to be drilled after the current well at Winters is completed and the rig is relocated the short distance to Stanley-5.
Stanley-5 is a development well targeting the Yegua formation, at approximately 5,000 feet.
Following the acquisition of Nadsoilco LLC in July this year, Mosman's interest in this well will be c36.5%. Mosman will fund its share of the USD 350,000 drilling costs from existing cash resources.
John W Barr, Chairman, said: "Mosman is pleased with the current drilling activity that we had planned for this year to achieve the strategic objective of increasing production."
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, announces its production summary for the six months ended on 30 June 2021.
Net Production attributable to Mosman for the six months was 12,143 boe, which was an increase of c 2,123 boe or c21% (on the six months ended 31 December 2020). With this progress, combined with higher sales prices, the acquisition of Nadsoilco (effective 1 July 2021) and an additional interest in Falcon, the future production is now more robust and Mosman is looking forward to a significantly improved production profile going forward.