Last checked at 1 Feb 2024 09:18
1 February 2024
Mosman Oil and Gas Limited
("Mosman" or the "Company")
December 2023 Quarter Production Summary
Mosman Oil and Gas Limited (AIM: MSMN) the hydrocarbon, helium and hydrogen exploration, development and production company, announces its production update for the three months ended 31 December 2023.
US Production (Various interests)
Mosman achieved net production of 2,725 boe (circa 30 boepd) versus net production of 3,564 boe (circa 39 boepd) in the prior September Quarter. The lower production rates were primarily due to changes in production infrastructure and managing sand produced with the oil at Stanley, which should facilitate higher production rates in 2024.
December Quarter Production Summary
3 Months to 31 December 2023 | 3 Months to 30 September 2023 | |||||
boe | boe | |||||
Gross Project Production | Net Production to Mosman | Gross Project Production | Net Production to Mosman |
| ||
Gross boe | Net boe | Gross boe | Net boe |
| ||
Cinnabar | 705 | 528 | 541 | 405 |
| |
Stanley | 3,951 | 1,461 | 6,038 | 2,170 |
| |
Winters | 1,060 | 247 | 2,085 | 487 |
| |
Livingston | 534 | 107 | 511 | 102 |
| |
Arkoma | 2,119 | 382 | 1,599 | 400 |
| |
Total boe | 8,369 | 2,725 | 10,774 | 3,564 |
| |
Net Production of 2,725 boe comprised of 2,220 barrels of oil and 2,929 MMBtu of gas. The average sale prices achieved during the period was US$76.22 per barrel for oil and US$2.37 per MMBtu for gas (September quarter was US$81.47 and US$2.22 respectively, and in each case after transport and processing costs but before royalties).
Production numbers in the Quarter are based on the current best available data or estimates (including field data if necessary) and are subject to adjustment upon receipt of final sales invoices from the purchasers of products.
Major Project Updates
Cinnabar (75% Working Interest)
Installation of artificial lift (pump jacks) have been selected as the preferred type of artificial lift which is expected to increase production rates.
Additional workovers are also being considered to test potential sands that appear attractive on wireline logs and sidewall cores. These workovers are planned to be funded from cashflow.
Stanley (34.85% to 38.5% Working Interest)
It was a busy quarter with recompletions, the repair of a key water disposal well and surface equipment modifications. An additional jet pump was installed at Stanley-5 in October 2023 and oil flow rates are good, but production has had to stop periodically to manage fine sand that is produced with the oil which blocks the screens. The sand extraction process has subsequently been changed to allow the sand to settle in tanks before separation and screening. Stanley-3 was successfully recompleted and produced strong gas flows, allowing gas sales. Adverse weather conditions caused some reduction in production rates in December due to freezing conditions and heavy rain affecting access roads (which has also been the case for some days in January).
Winters (23% Winters-2 Working Interest)
Winters-2 continues to produce both gas and oil.
Cash position
As at 31 December 2023, Mosman had cash at bank of circa AUD$0.6 million.
Andy Carroll, CEO, said: "This has been a busy period at Stanley with downhole operations and reconfiguration of surface equipment a priority, which should see higher production. Going forward, Cinnabar will be the priority area for the year ahead."
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this information is now considered to be in the public domain.
Enquiries:
Mosman Oil & Gas Limited Andy Carroll, Technical Director acarroll@mosmanoilandgas.com | NOMAD and Joint Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Adam Cowl +44 (0) 20 3470 0470 |
Alma Justine James / Will Merison +44 (0) 20 3405 0205 +44 (0) 7525 324431 mosman@almastrategic.com
| Joint Broker CMC Markets UK Plc Douglas Crippen +44 (0) 020 3003 8632 |
Updates on the Company's activities are regularly posted on its website: www.mosmanoilandgas.com
Notes to editors
Mosman (AIM: MSMN) is a hydrocarbon, helium and hydrogen exploration, development and production company with projects in the US and Australia.
Mosman's strategic objectives remain consistent: to identify opportunities which will provide operating cash flow and have development upside whilst maximising the opportunity for further production growth and increasing cashflow from its current US projects.
In addition, Mosman has two exploration areas in the Amadeus Basin in Central Australia which are well positioned to take advantage of the increasing demand for Helium and Hydrogen, in addition to oil and gas.
Glossary
boe | Barrels of oil equivalent based on calorific value as opposed to dollar value |
boepd | Barrels of oil per day of oil equivalent based on calorific value as opposed to dollar value |
bo | Barrels of oil |
bopd | Barrels of oil per day |
Gross Project Production | Means the production of boe at a total project level (100% basis) before royalties (where Mosman is the Operator) and where Mosman is not the operator the total gross production for the project |
Mcf | Thousand cubic feet |
Mcfpd | Thousand cubic feet per day |
MBtu | One thousand British Thermal Units |
MBtupd | One thousand British Thermal Units per day |
MMBtu | One million British Thermal Units |
MMBtupd | One million British Thermal Units per day |
Net Production | Net to Mosman's Working Interest; Net Production attributable to Mosman means net to Mosman's Working Interest before royalties |