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

Mosman Oil and GasAnnouncement

06/11/2023 07:00

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RNS Number : 4735S  Mosman Oil and Gas Limited  06 November 2023

6 November 2023

Mosman Oil and Gas Limited

("Mosman" or the "Company")

September 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 30 September 2023.

 

US Production (Various interests)

 

Mosman achieved net production of 3,564 boe (circa 39 boepd) versus net
production of 5,937 boe (c. 65 boepd) in the prior June Quarter. The lower
production rates are primarily due to lower production at Cinnabar-1, and
Stanley-5 not producing pending installation of a jet pump. A jet pump was
installed at Stanley-5 in October 2023 and production optimization continues
at Cinnabar.

 

 
September Quarter Production Summary
 
             3 Months to                                         3 Months to

             30 September  2023                                  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    541                       405                       1,775                     1,332
 Stanley     6,038                     2,170                     9,949                     3,744
 Winters     2,085                     487                       1,334                     311
 Livingston  511                       102                       350                       70
 Arkoma      1,599                     400                       1,924                     480
 Total boe   10,774                    3,564                     15,332                    5,937

 

Net Production of 3,564 boe comprised of 2,885 barrels of oil and 3,937 MMBtu
of gas. The average sale prices achieved during the period was US$81.47 per
barrel for oil and US$2.22 per MMBtu for gas (June quarter was US$73.02 and
US$1.70 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
(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 Cinnabar-1 well had water influx that resulted in low production rates
despite a workover and an initial attempt to gas lift the well. The last three
months all three wells have been producing intermittently and production is
mainly from G-1 and G-2 with Cinnabar-1 (G-3) supplying gas pressure support
for G-1 gas lift. Technical work continues to determine the preferred
artificial lift for Cinnabar-1 (G3) and the older wells G1 and G2.

 

Stanley (34.85% to 38.5% Working Interest)

 

Stanley-3 and Stanley-4 have benefited from installation of gas lift. Power
generation and sand production caused periodic shutdowns; these issues are now
being managed.  A jet pump has recently been installed on Stanley-5.

 

Winters (23% Winters-2 Working Interest)

 

Winters-2 continues to produce.

 

Cash position

 

As at 30 September 2023, Mosman had cash at bank of circa AUD$0.7 million.

 

Andy Carroll, CEO, said: "Whilst there are significant oil Reserves at
Cinnabar, we need to do better with production rates and technical work
continues to enable us to achieve this. We have successfully demonstrated the
benefits of jet pumps at Stanley and are working to improve overall production
for the December Quarter."

 

The Company continues to maintain its portfolio of development and exploration
projects, with a clear focus on its strategic plan to maximise the opportunity
for further production growth and increasing cashflow. In addition to its USA
projects, Mosman has two exploration areas in Australia which are well
positioned to take advantage of the increasing demand for Helium and Hydrogen,
in addition to oil and gas.

 

 

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                                                        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 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
existing exploration permits. 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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