REG - Mosman Oil & Gas - June 2024 Quarter Summary and Corporate Update

Mosman Oil and GasAnnouncement

15/07/2024 09:15

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RNS Number : 3979W  Mosman Oil and Gas Limited  15 July 2024

15 July 2024

Mosman Oil and Gas Limited

("Mosman" or the "Company")

June 2024 Quarter Production Summary and Corporate Update

Mosman Oil and Gas Limited (AIM: MSMN) the helium, hydrogen and hydrocarbon
exploration, development and production company, announces its production
update for the three months ended 30 June 2024 and a corporate update.

 

US Production (Various interests)

 

Mosman achieved net production in the June quarter of 6,287 boe (circa 69
boepd) versus net production of 3,764 boe (circa 41 boepd) in the March
Quarter. The higher production rates were primarily due to successful
workovers at Stanley.

June Quarter Production Summary
             3 Months to                                                        3 Months to

             30 June 2024                                                       31 March 2024
             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    520                       390                       728                           546
 Stanley     15,928                    5,709                     5,583                         2,163
 Winters     199                       46                        2,169                         506
 Livingston  710                       142                       338                           68
 Arkoma      -                         -                         1,927                         481
 Total boe   17,357                    6,287                     10,745                        3,764

 

Net Production of 6,287 boe comprised of 4,628 barrels of oil and 9,624 MMBtu
of gas. The average sale prices achieved during the period was US$78.82 per
barrel for oil and US$1.03 per MMBtu for gas (March quarter: US$73.73 and
US$2.74 respectively, and in each case after transport and processing costs
but before royalties).

 

             Year ended                                                         Year ended

             30 June 2024                                                       30 June 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    2,494                     1,869                     8,465                         6,349
 Stanley     31,500                    11,503                    44,915                        16,844
 Winters     5,513                     1,286                     22,733                        5,304
 Livingston  2,093                     419                       2,654                         531
 Arkoma      5,645                     1,263                     8,166                         2,039
 Total boe   47,245                    16,340                    86,933                        31,067

 

Mosman achieved net production in the year ending 30 June 2024 of 16,340 boe
(c45 boepd) versus net production of 31,067 boe (c85 boepd) in the prior year.
The lower production rates were primarily due to natural production decline
and various production issues.

 

Production numbers 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)

 

The decision was made to recomplete Arco Fee G-3 (formerly known as
Cinnabar-1) in a zone that looked promising on wireline logs. The recompleted
zone has produced oil with reduced water flow but only flows for a few days
before being shut-in to build up pressure. There appears to be a combination
of formation damage and/or low reservoir pressure that may be resolved by well
stimulation and/or artificial lift.

 

The other wells continue to produce oil intermittently.

 

Stanley (34.85% to 38.5% Working Interest)

 

Stanley-3 was successfully recompleted in March 2024 and produced strong gas
flows in April. The gas flow rate subsequently declined and this well is now
producing oil with an average gross flow rate in June of 156 bopd. Stanley-2
was recompleted and produces gas. Flow rates are constrained to preserve gas
for potential gas lift. Stanley-4 and Stanley-5 were worked over with hot oil
to manage paraffin wax build up. Work continues to optimise production at
Stanley.

 

 

Winters (23% Winters-2 Working Interest)

 

Winters-2 continues to produce both oil and gas with rates in natural decline.

 

Arkoma

 

Given the current low gas prices in USA and limited market for this asset it
is not currently being marketed for sale. Given the time delay in receiving
accurate production data, it has not been included in this quarterly report.
Net production from Arkoma is not expected to be material to Mosman.

 

 

Sale of Stanley Area Assets

 

As previously announced, the Stanley area assets (including Livingston and
Winters) are subject to a conditional sale contract. The buyer has requested
and Mosman has granted additional time for due diligence (which had originally
been set at 30 business days). This has now been extended until the end of
August 2024. Completion is still scheduled for 3 September 2024.

 

Australian Exploration

 

EP 145

 

The Operator (Greenvale Energy Ltd) has been advised by the NT government
department that they would approve or request modification to the submitted
EP145 2D Seismic Environmental Management Plan (EMP) on or before 26 August
2024.

 

The Company has also been advised that, due to the upcoming Northern Territory
elections, the NT Government will go into caretaker mode from 1 August 2024
until the election is completed and the new Government is sworn in by the
Administrator. During this period, the Government assumes a "caretaker" role
and avoids making major decisions such as approval of Environmental Management
Plans. Greenvale Energy has therefore applied to the NT Government to extend
the current permit year commitments by six months to February 2025 to allow
for the completion of the planned 2D seismic and to keep the permit in good
standing.

 

EPA 155

 

Mosman notes the recent update from Mining Minerals & Metals plc ("MMM")
regarding the proposed acquisition of Georgina Energy plc ("Georgina").
Georgina's subsidiary company Westmarket Oil & Gas Pty Ltd is Mosman's
farmin partner in Exploration Permit 155 application.

 

Mining Minerals & Metals Plc (AIM:MMM) has confirmed that a prospectus has
been approved by the UK Financial Conduct Authority ("Prospectus") regarding
the reverse takeover by Georgina Energy plc and a capital raise to raise gross
proceeds of £5m. The Prospectus has been published and is available to view
at www.mmmplc.com/mmmplc-news (http://www.mmmplc.com/mmmplc-news) . The
Prospectus includes a Competent Person's Report ("CPR").

 

 

Cash position

 

As at 30 June 2024, Mosman had cash at bank of circa AUD$1.07 million. The
cash balance has increased since that date due to the exercise of warrants.

 

 

Andy Carroll, CEO, said: "We are pleased to see production increasing this
quarter as a result of successful workovers at Stanley. With the oil price
around USD 80 per barrel this asset provides strong cash flow.

 

"The NT election may result in a modest delay in the seismic acquisition in EP
145, but that work should still happen in 2024."

 

 

 

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                                                         SP Angel Corporate Finance LLP

 CEO                                                                  Stuart Gledhill / Richard Hail / Adam Cowl

 acarroll@mosmanoilandgas.com (mailto:acarroll@mosmanoilandgas.com)   +44 (0) 20 3470 0470
 Alma                                                                 Joint Broker

 Justine James                                                        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 helium, hydrogen and hydrocarbon 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. The Company has several projects in
the US, in addition to exploration projects in the Amadeus Basin in Central
Australia.

 

 

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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