Last checked at 6 Feb 2019 07:00
6 February 2019
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Production Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, provides the following production information for the six months from 1 July 2018 to 31 December 2018.
Production Summary
Net Production attributable to Mosman increased 47% in this period, compared to the prior six months. The one new well is Stanley-1, which continues to produce mainly gas with some oil.
The weather has resulted in lower production than expected, mainly due to wet road conditions affecting access to well sites. For example, production at Welch was limited by some wells not producing due to broken rods (which is a routine workover); and the drilling of Stanley-2 has been delayed as the road needs to be in dry condition for the heavy rig loads. Once the roads dry out, the workovers at Welch and drilling of Stanley-2 can proceed. Both of these activities are expected to further increase production.
Production (6 months ended 31 December 2018)
Total Gross Production was 18,253 boe an increase of 48.9% (12,260 six months to 30 June 2018).
Net Production attributable to Mosman was 6,476 boe an increase of 46.6% (4,417 six months ended 30 June 2018).
Net Sales attributable to Mosman were AUD$614,120 an increase of 14.9% (AUD$534,500 six months ended 30 June 2018).
Further details are outlined below:
| 6 Months to 31 December 2018
| 6 Months to 31 December 2018
|
| Total Project Basis | Net Production Attributable to Mosman |
| Gross BOE | Net BOE |
Stanley (*) | 6,071 | 1,002 |
Welch | 5,137 | 3,937 |
Arkoma (**) | 5,996 | 1,117 |
Strawn | 1,049 | 420 |
Total BOE | 18,253 | 6,476 |
1. * Stanley-1 commenced production in September 2018.
2. **Does not reflect full six months production as wells were not producing while workovers occurred.
John W Barr, Chairman, said: "Mosman continues to grow its production and sales consistent with its business plan, despite the challenges of the severe weather delays, oil price falls and operational issues during the period.
"Production growth is expected to continue as workovers are completed and new wells drilled.
The horizontal wells at Welch are subject to funding, where options are being reviewed, including a farmout. Planning continues for additional wells."
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 Engineers.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside
information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Enquiries:
Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director jwbarr@mosmanoilandgas.com acarroll@mosmanoilandgas.com
| NOMAD and Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Soltan Tagiev +44 (0) 20 3470 0470
|
Gable Communications Limited Justine James / John Bick +44 (0) 20 7193 7463 mosman@gablecommunications.com | Joint Broker SVS Securities Plc Tom Curran / Ben Tadd +44 (0) 203 700 0078
|
Updates on the Company's activities are regularly posted on its website www.mosmanoilandgas.com
Production by Project
The below table is an unaudited summary of production by project for the period described. The below figures are prepared by management using established industry practice.
| 6 Months to 31 December 2017
| 6 Months to 31 December 2017
|
| Total Project Basis | Net Production Attributable to Mosman |
| Gross BOE | Net BOE |
Strawn | 1,716 | 686 |
Welch | 3,108 | 2,383 |
Arkoma | 4,781 | 206 |
Total BOE | 9,604 | 3,274 |
| 6 Months to 31 December 2018
| 6 Months to 31 December 2018
|
| Total Project Basis | Net Production Attributable to Mosman |
| Gross BOE | Net BOE |
Strawn | 1,519 | 608 |
Welch | 4,309 | 3,303 |
Arkoma | 6,434 | 507 |
Total BOE | 12,262 | 4,417 |
| 6 Months to 31 December 2018
| 6 Months to 31 December 2018 |
| Total Project Basis | Net Production Attributable to Mosman |
| Gross BOE | Net BOE |
Stanley | 6,071 | 1,002 |
Strawn | 1,049 | 420 |
Welch | 5,137 | 3,937 |
Arkoma | 5,996 | 1,117 |
Total BOE | 18,253 | 6,476 |
Definitions
boe or BOE | barrels of oil equivalent |
Gross Sales | Reference to sales is boe that has been sold from the project throughout the period |
Net Sales Attributable to Mosman | Mosman's portion of Gross sales less royalties owed to leaseholders |
Total Gross Production | boe produced on the project throughout the period. Includes oil still held as inventory |
Net Production Attributable to Mosman | Mosman's portion of Total Gross Production less royalties owed to leaseholders . |
Total Project Basis | Refers to performance of Sales or Production on a 100% basis of the four projects that Mosman has invested in. |