REG - Mosman Oil & Gas - Cinnabar G1 Well Workover and Start of Gas Lift

Mosman Oil and GasAnnouncement

17/04/2023 07:00

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RNS Number : 3432W  Mosman Oil and Gas Limited  17 April 2023

17 April 2023
Mosman Oil and Gas Limited

("Mosman" or the "Company")

 

Cinnabar G1 well workover and start of gas lift

 

 

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and
production company, advises that the Arco-Fee G-1 ("G1") well at Cinnabar
flowed oil following a successful workover to enable gas lift. Mosman has a
75% working interest in Cinnabar.

 

Previously, Mosman advised that it proposed examination of the feasibility of
workovers at G1 and Arco-Fee G-2 well ("G2") to increase production. Mosman
has subsequently completed a workover on the G1 well and has been injecting
gas from Cinnabar-1 well (after it is processed at the central production
facility).

 

As a result of gas injection, the G1 well has started to flow oil and water
with initial rates of circa 5 bopd (the well production rate had declined from
over 100 bopd in 1988 to a few barrels per month in 2022). Production of G1
will be optimised with the addition of gas compression that is required to
increase the gas injection pressure. This will require the identification,
purchase and installation of a suitable compressor and associated facilities.
The compression facility will also be designed to compress gas prior to sale
at the nearby gas pipeline. Mosman will fund these items from existing cash
reserves and the proceeds from the recent placing.

 

The Cinnabar Field

 

The Cinnabar Field is in Tyler County Texas, approximately 30 miles north of
Beaumont,

Texas. It was discovered in 1988 by Ballard Exploration's G-1 well which found
multiple pay zones in the Wilcox Formation from depths of approximately 9,000
feet to 10,400 feet.

 

Geology

 

The Wilcox sands in this area were originally deposited in a nearshore deltaic
environment. The

reservoirs in this play are predominantly upper Wilcox shelf-edge sandstones
cut by Wilcox growth faults. The porosity of the sandstones ranges up to 26
percent, and permeabilities range up to 600 millidarcies.  Traps occur on the
numerous growth faults and growth fault segments, and include fault traps,
facies changes along the growth fault, and anticlinal structures in the growth
faults.

 

Seals for many of the reservoirs are interbedded mudstones juxtaposed with the
sandstones along the faults.

 

Production History

 

The discovery well, Arco Fee G-1 has produced from the 7th Wilcox, 5th Wilcox,
2nd Wilcox and 1(st) Wilcox zones.

 

A second well, G2 has similar pay zones.

 

G-1 has produced approximately 149,000 bbls and 341 Mmcf to date and as noted
above is now producing with gas lift.

G2 has produced approximately 138,000 bbls and 173 Mmcf and is currently
shut-in.

 

The third well, Cinnabar-1 was drilled in November 2022 and is currently on
production.

 

 

 

 

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 John W Barr, Executive Chairman Andy Carroll,      NOMAD and Broker
 Technical Director

                                                                           SP Angel Corporate Finance LLP
 jwbarr@mosmanoilandgas.com (mailto:jwbarr@mosmanoilandgas.com)

 acarroll@mosmanoilandgas.com (mailto:acarroll@mosmanoilandgas.com)          Stuart Gledhill / Richard Hail / Adam Cowl

                                                                             +44 (0) 20 3470 0470
 Alma PR

 Justine James / Pippa Crabtree

 +44 (0) 20 3405 0205

 +44 (0) 7525 324431

 mosman@almapr.co.uk (mailto:mosman@almapr.co.uk)

 

Updates on the Company's activities are regularly posted on its website:

www.mosmanoilandgas.com (http://www.mosmanoilandgas.com/)

 

 

 

Notes to editors

Mosman (AIM: MSMN) is an oil 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, in conjunction with progressing exploration of
its existing exploration permit and permit application. The Company has
several projects in the US. In addition to exploration projects in the Amadeus
Basin in Central Australia.

 

 

 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
 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
 Mmcf                      Million 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

 

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