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Increase in Working Interest in US Production and Exploration Projects
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, has agreed to acquire an additional 25% working interest ("WI") in the Falcon lease (including the Falcon-1 well) and 25% of the adjacent Galaxie lease. Mosman will acquire these WIs from Baja Oil and Gas LLC, for a cash consideration of USD 160,000 and the effective date is 1 July 2021.
Since the recent recompletion, production at the Falcon-1 well has been steady with the recent average flow rate of circa 112 boepd of gas and 7 bopd of oil condensate for a total of 119 boepd. Unaudited gross revenue from Falcon-1 in June is estimated to be circa USD$40,000 after royalties.
This acquisition means Mosman's share of production increases by circa 30 boepd from 60 to circa 90 boped (as of the effective date of 1 July). Mosman also has more control of the timing of technical work and operations with the increase from 50% to 75% WI at Falcon the lease and increasing to 85% ownership at the Galaxie lease, where Mosman will become Operator. There is not currently any independent report to quantify resources or reserves on the Falcon on Galaxie leases.
As previously announced in the Company's interim results for the six month period to 31 December 2020 ("H1 2021"), with the Falcon-1 well only coming on production in December 2020, there was no revenue recognised by the Company until cash for hydrocarbon sales was received in January 2021 and thus there was no revenue recognised during H1 2021. Similarly all costs prior to January 2021 have been capitalised so there was no accounting profit or loss for Falcon in H1 2021.
The consideration will be paid from the Company's existing cash resources and the transaction is due to complete on 30 July 2021. Baja has agreed to use part of the USD 160,000 consideration to repay an existing debt to Nadsoilco; monies owed by Baja for work at the Falcon-1 well, and a prepayment towards the drilling of the Stanley-5 well. The AFE ("Authorisation For Expenditure") for the Stanley-5 well has been issued and drilling is scheduled to take place after the Winters-2 well is drilled.
John W Barr, Chairman, said: "The Board is delighted to yet again increase its production portfolio in Eastern Texas, and to increase ownership and control of additional acreage."
https://www.youtube.com/watch?v=Ors2bkv04YM&feature=youtu.be
#MSMN
@Mosmanoilandgas
Exec Chairman John Barr talks to
@Alan__Green
~Texas #oil & #gas assets & what to expect following Nadsoilco acquisition
~#Helium EP145 & EP155 assets, Amadeus Basin Australia
~Company cash position & outlook
And the rest...
This new data set supports the likely presence of helium and may be due to higher levels of Helium gas in the deeper presalt targets where Helium is sourced from Proterozoic crustal rocks and the mantle.
The Company intends to undertake further interpretation work in order to tie this data to the prospects mapped on existing 2D seismic and the Falcon gravity gradiometry survey which will be acquired later this month once a current COVID 19 lockdown expires.
Warrant Exercise
Mosman has received funds and notification to exercise warrants over a total of 77,375,000 new Ordinary Shares of no par value in the share capital of the Company (the 'Warrant Shares') at a price of 0.15 pence per share.
The funds from the exercise of the warrants of circa AUD 214,000 will be added to Mosman's existing cash reserves and is included in the cash position outlined above.
https://www.lse.co.uk/rns/MSMN/update-on-acquisition-ep-145-warrant-excersise-5gsujjk9ab9un64.html
Update on Nadsoil Acquisition and EP-145
Warrant Exercise
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update on: the acquisition of Nadsoilco LLC ("Nadsoil") and completion of a gas seep study at EP-145 in the Amadeus Basin. In addition, the Company has received notification of the exercise of warrants.
Nadsoil acquisition
In accordance with the contract, the acquisition of all the issued shares in Nadsoil was completed yesterday (1 July 2021), and the initial consideration was paid.
Mosman will now focus on the matters referred to in the recent announcement, including assuming management control of Nadsoil, operatorship of project areas and leases, continuing with the planning to drill the Winters 1 well, and the Stanley 5 well, and completing workovers. The objective being to increase production and thus cashflow.
Exploration in central Australia remains a priority with the gravity survey set to start once a current COVID 19 lockdown expires.
Funding
After payment of the Nadsoil initial consideration and the recent exercise of warrants (including those referred to in this announcement), Mosman now has approximately AUD 2.450 million in cash to pursue its objectives, as outlined above.
In the last year, the exercise of the warrants that were due to expire in July 2021 has raised over AUD 1.180million. These funds were an important consideration in proceeding with the Nadsoil Acquisition and establishing the forward planning.
Satellite gas seep study completed over permit EP-145, Amadeus Basin
Mosman has completed a gas seep study using satellite data over EP-145 and the surrounding area, in the Amadeus Basin, Northern Territory of Australia. Wells drilled in the Amadeus Basin have recorded significant levels of Helium.
The gas seep study, undertaken by Dirt Petroleum, a satellite image processing company, provides high resolution data regarding the likely presence and distribution of Helium gas within the lower atmosphere directly above ground level. It is a useful tool for detecting gas seeping to the surface via natural fractures and via leaks from wells and pipelines.
The study supported the presence of Helium gas around the Mereenie oil and gas field where economically significant levels of Helium (av 0.23%) have been recorded in gas samples and documented in relevant literature (Boreham et al. 2018). Similar anomalies were observed in Mosman's EP145 license, close to the Tent Hill-1 exploration well that is located at the eastern extent of the West Walker anticline, in the centre of the permit, and along the eastern permit boundary. This new data set supports the likely presence of helium and may be due to higher levels of Helium gas in the deeper presalt targets wher
Mosman awards contract at Amadeus Basin Permit EP 145
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, has awarded the contract for an airborne gravity and gradiometry survey over EP 145, in the Amadeus Basin in the Northern Territory of Australia, to CGG Aviation (Australia) Pty. Ltd.
The acquisition of data is planned for mid-June and is a significant step in the exploration programme for EP 145 as it is the first time data will be acquired across the whole permit in order to identify where to focus the seismic programme to enable Mosman to identify a drilling prospect. The survey operation is subject to NT government approval, which was applied for in May.
The cA$300,000 gravity survey will provide valuable data regarding the subsurface geology across the entire 818 sq km permit area. Current subsurface seismic data is limited to the NW and central part of the permit and existing regional gravity data is too sparse to provide sufficient detail of the complex salt related structures which have been identified as hydrocarbon and helium leads within the permit.
The survey will be acquired using the high resolution Falcon Airborne Gravity Gradiometry System which has the ability to image salt and subsalt geometry across a range of depths. The technique measures the density contrast of the different rock layers with a higher level of resolution and sensitivity than standard gravity tools, improving confidence in the interpretation of high density and gravity features including salt related structures. The Falcon system has been used to successfully interpret drill targets across a variety of geological settings around the world including the Canning Basin Western Australia.
John W Barr, Chairman of Mosman commented: "This is a significant step in the exploration of EP 145. We are delighted to have awarded this contract in order for Mosman to be able to use the Falcon gravity and gradiometry data to assist with refinement of the 2D seismic programme in order to focus on potential drill targets in the permit."
As previously announced, independent resource estimates by SRK (2016) support prospective resources of 22Bcf in the Pacoota Sandstone play and additional unconventional prospective resources of 1,456Bcf in the Horn Valley Siltstone (SRK report 2016, P50 gross unrisked) on EP145.
Mr. Andy Carroll and Dr Julie Daws attended the Annual Geoscience Exploration Seminar 2021 Conference in Alice Springs on 19-20 April. The presentations included Federal and State Minister speeches with government supporting investment in exploration and infrastructure. Part of the State $9 million per annum pledge of support includes a 50% grant for geophysical work (up to $100,000 per survey) and Mosman has applied for this grant.
There was also a presentation of the SEEBASE basement map for the whole of N Northern Territory, which will help Mosman integrate the local data obtained in EP 145 with regional geophysical data.
Further details of timing will be provided once known.
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, advises an update in respect to EP 145 in the Amadeus Basin in the Northern Territory of Australia ("NT").
As previously advised, Mosman is now operating in two distinct divisions. Dr Julie Daws, in consultation with the Technical Director, Mr. Andy Carroll, is managing Mosman's exploration work in Australia, specifically EP 145 airborne gravity and seismic acquisition. Bids have now been received for the airborne gravity data acquisition and are currently being evaluated. As there are not currently any Covid-19 restrictions in the Northern Territory where EP145 is located, and no ground access is required, this survey is able to proceed in the near future once a contractor is selected and equipment is available.
Planning for the seismic acquisition is ongoing. Mr. Andy Carroll and Dr Julie Daws met with the Aboriginal Areas Protection Authority ("APAA") and the Central Land Council ("CLC") in Alice Springs to discuss the current work programme. An AAPA Sacred Site Clearance Certificate is required to ensure no damage to sacred sites, and this has been received.
Other requirements prior to the seismic acquisition include the CLC requirement for a heritage survey (needed prior to ground access), where Mosman is awaiting clarity from CLC on timing and also the requirement for an on-ground environmental survey and Environmental Management Plan before the crews can access the area to acquire the seismic data. Given delays related to Covid-19, Mosman no longer considers it feasible to obtain and process the seismic data under the original EP 145 permit seismic schedule of August 2021, and Mosman has applied to the NT Government for an extension.
The subsalt play is a focus of exploration across the Amadeus Basin, including Mosman operated EP145. Two wells in the Amadeus Basin, Magee-1 in EP38 (Pacific O&G, 1992) and Mt Kitty-1 in EP125 (Santos, 2014), encountered hydrocarbons with up to 9% helium within this interval and other significant structures have been identified including Dukas-1 in EP112 (Santos, 2019) and the Zevon lead in EP115 (Central Petroleum) which is located close to EP145.
In addition to the subsalt prospectivity, EP145 contains the West Walker-1 gas discovery which lies on trend with the Mereenie oil and gas field which produces from the Ordovician Pacoota Sandstone unit and the Palm Valley gas field that have both been under production for over 30 years.
Two wells have been drilled in EP145, the first West Walker -1 (1982) tested the western end of an anticlinal feature and flowed wet gas to surface at a rate of 3.5MMscf/d from the Pacoota Sandstone, also the main producing reservoir in the Mereenie Field. A follow up well drilled, called Tent Hill -1 (1984), located to the southeast on the same anticline was deemed unsuccessful, although oil was observed weeping from cores.
As previously announced, independent reso
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces that it has received notification to exercise warrants over a total of 10,000,000 new Ordinary Shares of no par value in the share capital of the Company (the 'Warrant Shares') at a price of 0.15 pence per share.
The funds from the exercise of the warrants of circa AUD 27,000 will be added to Mosman's existing cash reserves.
Total Voting Rights
Application will be made to the London Stock Exchange plc for 10,000,000 new Ordinary Shares to be admitted to trading on the AIM market ("Admission") with Admission expected to occur on or around 18 February 2021. The new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares including the right to receive any dividend or other distribution thereafter declared, made or paid. There are no Ordinary Shares held in treasury. Following Admission of the 10,000,000 new Ordinary Shares the total number of voting rights in the Company will be 2,646,513,052.
The presentation was RNS'd on Friday and didn't appear here either!
https://www.**********.co.uk/rns/announcement/265c80b3-f913-40e2-a37f-6ace2c2c30b2/
It's with Proactive:
@proactive_UK
·
Jan 8
We will be recording an investor Q&A session with @Mosmanoilandgas next week. Please reply in the comments with any questions you would like us to put to management. #MSMN
As long as they're not duff results!
If that's water, I wouldn't want to drink it.
Couple of video clips of Stanley 4 just been tweeted: https://twitter.com/Mosmanoilandgas/status/1326835732099567616 and https://twitter.com/Mosmanoilandgas/status/1326855011339472903
SRK Consulting finalised a report into the prospective resources contained in permit EP 145. Report highlights potential for both conventional oil and gas resources in proven reservoirs within West Walker Anticline and unconventional gas resources in the Horn Valley Siltstone.
Updated line on the Baja website: https://bajaoil.com/
Drilling operations on the Falcon-1 well in the Champion Project Area have been completed. The Falcon-1 well encountered the primary and secondary reservoir objectives as predicted pre-drill, production casing has been run, and testing and production operations are expected to commence prior to the end of the month of October.
Falcon-1 Log Results indicate Hydrocarbons
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update on drilling at the Falcon-1 well on the Champion Project in East Texas.
The wireline logs indicate good porosity and hydrocarbons in the primary and secondary Frio sandstone target zones interbedded with shale between circa 7100 to 7550 feet TVD. The primary zone is circa 90 feet thick. The mud logs also showed hydrocarbons in these zones with an increase in mud gas readings from a background of circa 30 units to over 3000 units in the primary zone.
Casing will be run and the well will be flow tested once the drilling rig is released and production testing equipment is on site.
https://www.lse.co.uk/rns/MSMN/falcon-1-log-results-indicate-hydrocarbons-lqq7l9a43bmj628.html
Falcon-1 Drilling Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update on drilling at the Falcon-1 well on the Champion Project in East Texas.
The well has been drilled to Target Depth of circa 7,762 feet. Several Frio sandstones were intersected as expected and this has confirmed the geological model based on 3D seismic and nearby wells.
The next step is to run the wireline logs. Mosman intends to report on the results once these logs have been evaluated.
Based on the results so far, the decision has been made to run casing in the expectation of completing the well as a production well.