REG - Mosman Oil & Gas - December 2023 Quarter Production Summary

Mosman Oil and GasAnnouncement

01/02/2024 09:30

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RNS Number : 7024B  Mosman Oil and Gas Limited  01 February 2024

 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                                                        3 Months to

             31 December 2023                                                   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                                             NOMAD and Joint Broker

 Andy Carroll, Technical Director                                     SP Angel Corporate Finance LLP

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

                                                                      +44 (0) 20 3470 0470
 Alma                                                                 Joint Broker

 Justine James / Will Merison                                         CMC Markets UK Plc

 +44 (0) 20 3405 0205                                                 Douglas Crippen

 +44 (0) 7525 324431                                                  +44 (0) 020 3003 8632

 mosman@almastrategic.com (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 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

 

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