TIDMMSMN
RNS Number : 3596I
Mosman Oil and Gas Limited
30 August 2016
30 August 2016
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Investment Update
Mosman Oil and Gas Limited (AIM: MSMN) the New Zealand and
Australia focused oil exploration and development company, is
pleased to note recent releases made by both Gem International
Resources Inc. (TSX.V GI) ("GEM") and Hemisphere Energy Corporation
(TSX.V HME) ("HME") in respect to their operations.
Gem International Resources Inc. (TSX.V GI)
As announced in May 2016, Mosman acquired 8 million shares and 8
million two year 15 cent (CAN) options in GEM at a price of 5 (CAN)
cents. Mosman's investment currently represents just under 20 per
cent. of GEM's issued share capital and the current share price is
12.5 (CAN) cents.
GEM recently released an update to the market in respect to the
Dala Project, Lunda Sul Province, Angola. In that update GEM
advised:
"Its operating partner Global Gems International ("GGI") has
started the initial work program to begin evaluation and production
of diamonds from high priority areas highlighted as favorable for
hosting alluvial diamond deposits on the 3,000 sq. km. Dala
alluvial mining license in Lunda Sul Province, Angola.
Dala is located in the heart of a highly prospective and
productive diamond region of Angola, only 25 kilometres south of
the world-class Catoca diamond mine, the world's fourth largest,
and immediately adjacent to the regional centre of Saurimo. Dala is
an early stage project with excellent potential for the discovery
of both alluvial and kimberlite deposits. Two of the area's most
productive alluvial diamond hosting rivers, Luachimo and Tchicapa
flow northward through the license with over 100 km of combined
drainage length, and there are numerous areas of currently active
artisanal diamond production along these drainages and their
tributaries.
Work Program
The Company and GGI have started the initial field and technical
programs to prioritize startup areas for alluvial gravel testing.
This includes establishment of a camp logistics base in Saurimo, as
well as procurement of mining, diamond production and
infrastructure equipment. Over 30 high priority areas have been
identified where there are classic trap sites in active drainages
and accumulations of river gravels preserved in old meanders and
terraces. Observation of the extensive active and historical
artisanal work areas by local garimpeiros at Dala indicate that
extensive areas of Calonda Formation may be present. The Calonda
Formation is a regional basal gravel and sheet wash unit in the
Lunda Provinces that is often very diamondiferous and
productive.
Data Acquisition
The Company is in the process of reviewing an extensive database
of information for both alluvial and kimberlite exploration by a
previous operator at Dala with the objective of acquiring this
information to assist the current work. With data for over 900
alluvial sample sites and extensive information from kimberlite
exploration this database will speed up the ability to prioritize
initial work areas. It is known that at least 5 new kimberlite
pipes were located at Dala and numerous other untested kimberlite
targets are known to be present. The alluvial diamonds currently
being mined there are likely to have sources in diamond bearing
kimberlites on the Dala License. GGI staff is also reviewing and
have access to, all known technical data for Dala held by Endiama
the Angolan state diamond organization. It is known that historical
alluvial sampling data from over 900 sites on the license are
available, as well as information filed by a previous company for
their kimberlite exploration program. This information will be
invaluable in determining high priority area to begin the work
program.
A diamond recovery plant is being sourced will be installed on
site later this season. The smaller volume gravel pumping
operations will utilize jig type diamond recovery equipment using
an x-ray recovery system on the concentrates and all tailings will
be passed over diamond grease tables as a final recovery procedure.
Oversize waste will be stockpiled for later processing. It is known
that diamonds of over 40 carats in weight have been recovered at
Dala from the artisanal operations and the recovery procedures will
be set up to maximize the ability of the system to recover larger
stones . A rigorous diamond security system will be implemented for
all stages of the diamond recovery operations."
Mr. Lee Barker P.Eng, P. Geol., a (qualified person under the
Canadian National Instrument 43-101) reviewed and approved the
technical contents of the update.
Hemisphere Energy Corporation (TSX.V HME)
As announced in July 2016, Mosman acquired 2 million shares in
HME at a price of 19 (CAN) cents. Mosman's investment represents
less than 3 per cent of HME's issued share capital. The current
share price is 19 (CAN) cents.
HME has released an update, in respect to its quarterly
production and operations. HME identified the following
highlights:
-- "Averaged quarterly production of 492 boe/d (83% oil).
-- Realized an operating netback of $580,876, or $12.97/boe, for
a $10.24/boe improvement over the first quarter of 2016 with an
average WTI price of $45.59 US/bbl.
-- Attained aggregate funds flow from operations of $159,894.
-- Significantly decreased general and administration costs by
45% from the second quarter of 2015, resulting in G&A of
$6.35/boe.
-- Announced and closed the first tranche of a private placement
financing with gross proceeds of $1,041,435.
-- Started injection at the third pilot well in the Atlee
Buffalo Upper Mannville F pool, which has started to exhibit a
positive production response.
-- Confirmed credit facility of $12.5 million."
A full copy of this update (including definitions and qualified
parties) can be found at:
http://www.hemisphereenergy.ca/sites/default/files/2016-08-25%20NR%20Q2%202016%20Results%20FINAL.pdf
Mosman will keep Shareholders updated of developments in GEM and
HME in accordance with its regulatory obligations under the AIM
Rules for Companies and MAR, however certain announcements by GEM
and HME may be deemed non-price sensitive events for a Mosman
shareholder and therefore no notification will be made by Mosman.
Mosman shareholders can find further information on the respective
companies websites.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries
Mosman Oil & Gas Limited NOMAD and Broker
John W Barr, Executive SP Angel Corporate Finance
Chairman LLP
Andy Carroll, Technical Stuart Gledhill / Richard
Director Hail
jwbarr@mosmanoilandgas.com +44 (0) 20 3470 0470
acarroll@mosmanoilandgas.com
Gable Communications
Limited
Justine James / John
Bick
+44 (0) 20 7193 7463
mosman@gablecommunications.com
Updates on the Company's activities are regularly posted on its
website
www.mosmanoilandgas.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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