Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Yes, worth highlighting the clarification they had to put out...
Xstate Resources Limited (ASX: XST) (“Xstate” or “the Company”) wishes to make a clarification in
regard to its previous announcement regarding termination of the Champion Project Farm-in
Agreement. The termination of the agreement was in regard to significant delays in the timing of
drilling the intended well, not the well costs as previously stated.
In the corporate presentations earlier this year, Mosman had indicated it was expecting approx 40 bopd net from Falcon. That was based on our reduced ownership (35%). Now that we've got 60% again, that indicative figure could be more like 70-80 bopd net to Mosman. Let's just hope the revised cost of the well is affordable.
Champion Project Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, advises an update on the Champion Project. Currently Mosman owns a 60% working interest in the Champion Project, containing the Falcon prospect ("Falcon") and the Galaxie prospect ("Galaxie") in Texas.
Mosman has been advised by the Operator ("Baja Oil & Gas LLC") that it has identified a potential cost saving by acquiring and re-purposing an existing well to drill and test the Falcon target. Once this opportunity has been evaluated, Mosman expects the Operator to provide updated drilling cost estimates and a revised schedule which may result in a delay from the current Q3 2019 drilling expectation.
As announced on 8 May 2019, Mosman had previously agreed a Farm-in agreement for the Champion project with ASX listed Xstate Resources Limited ("Xstate") (ASX:XST). Following the update from the Operator, Mosman has been advised that Xstate no longer wishes to proceed with the Farm-in at Champion and accordingly Mosman and Xstate have today signed an agreement to terminate the Farm-in agreement such that Xstate no longer has any rights or obligations in respect of the Champion project.
Mosman expects to provide an update on the timing and funding of the Falcon well in due course.
That sounds about right - based on the first half figures, we were getting around 26 bopd from Welch and 23 bopd from Arkoma on average. Add to that the increased July production figures from Stanley, which I calculate to be around 40 bopd to Mosman so looking at around 89 bopd and rising?
Good news for our US production assets https://oilprice.com/Energy/Oil-Prices/Texas-Crude-Is-Fetching-Better-Prices.html
Two more tweets from Mosman mentioning the Amadeus Basin - a Proactive interview about Stanley the Oil Capital Conference presentation by AC.
Thanks 1digger, is that from now or the total drill time? If it's the latter we must be about half way.
If we get the permit extension then yes, I think it could be!
How serious do you think the threat to our permit extension being granted is, 1digger?
They've also tweeted this one again today too:
Mosman #MSMN Amadeus basin - It is encouraging to note that the Northern Territory Government is progressing on the development of a gas pipeline and has selected Jemena Northern Gas Pipeline Pty Ltd to construct and operate the North East Gas Interconnector (NEGI) Pipeline.
Yes, seems a bit random! They seem to have scheduled a few repeat posts which probably isn't massively helpful for investors. Yesterday's tweet about the most recent drilling update was probably more appropriate (and encouraging).
Interesting that Mosman is tweeting about today's Dukas update - would seem a strange thing to do if they thought they might lose the permit I would have thought?
Mosman #MSMN
Central Petroleum Limited (ASX:CTP) Dukas 1 Drilling Update
This is particularly relevant to Mosman as seismic data indicates the salt seal extends in to EP 145.
https://t.co/XRlNSUkGxm https://t.co/5ZBB7gY7kN
DUKAS 1 DRILLING UPDATE
Central Petroleum Limited (ASX:CTP) (“Company” or “Central”) provides the following update in relation to the drilling of the Dukas 1 well.
Dukas 1 is currently at a depth of 3,704m (MD) and in the Gillen Formation. Formation pressures have been encountered that are significantly higher than that seen in previous wells targeting the pre-salt play (Mt Kitty and Magee). This overpressure is associated with an inflow of gas of yet to be determined composition.
The Joint Venture is now considering the best options for a forward plan. Such options may include suspending the well and returning to drilling operations at a later date. Whilst this delay is disappointing, the presence of such overpressure in association with gas adds to the evidence from Mt Kitty and Magee that there appears to be a working petroleum system at this location.
The well has not, as yet, intersected the primary target Heavitree Formation, although it is expected to be within a few hundred metres of the current depth. A further update on the forward plan will be announced as soon as it has been decided by the Joint Venture.
SVS conspicuous by its absence from today's RNS
Baja website has been updated with:
Location selection for the upcoming Stanley-3 well is complete, and surface location preparation is underway. Similar to the first two wells in the Stanley project, Stanley-3 will be drilled to evaluate the oil and gas potential of multiple reservoir intervals. If successful, Stanley-3 will also be fast-tracked for tie-in to production operations.
JB said very shortly in one of the interviews so let's hope so
It's all a bit of guesswork but if we take the numbers from the last production update in April (Jan-Mar) we get 2,301 for Welch and 2,784 for Arkoma (net to Mosman). Over 90 days that works out as 5,085 barrels/90 = 56.5bopd. Stanley wells are currently around 37bopd net combined so looking at around 93.5bopd if production hasn't changed dramatically at any of the projects I would think.
Yes JB refers to Stanley as low cost and says it's looking very good at present. Hopefully Stanley 2 numbers will pick up in time
Nice vid tweeted today by Mosman of oil off take at Stanley. Hope they are hinting at good news this week.