TIDMMSMN
RNS Number : 8591X
Mosman Oil and Gas Limited
27 February 2017
27 February 2017
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Corporate Update and Increase in GEM shareholding
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration and
development company, announces an update in respect to its current
operations.
Australia
Amadeus Basin Permits
Mosman owns and operates two granted permits (EP 145 & 156)
and one application (EPA 155).
The fieldwork programme at EP145 was recently completed and the
report is being finalised.
There is significant activity in the region, where work has
begun on procurement for the Northern Gas Pipeline to connect the
Northern Territory pipelines to the East Coast gas markets. This is
scheduled to carry gas in 2018 with the linking of Tennant Creek
and Mount Isa.
It is also noted that in the Amadeus Basin a number of matters
have been announced by other companies including:
-- Central Petroleum Limited (CTP), which in November received
an unsolicited, indicative and non-binding proposal from Macquarie
Group Ltd (Macquarie);
-- Santos Limited recently sold its interest in the Mereenie Oil
and Gas Field (including the Alice Springs Pipeline) to a Macquarie
subsidiary for AUD52 million, and
-- A significant seismic survey is currently underway in the
southern Amadeus, funded by Santos as a multi-million dollar
farm-in to CTP exploration acreage.
Mosman's permits are strategically located and EP 145 is
adjacent to the Mereenie project, and Mosman has been closely
monitoring events.
The Pacoota Sandstone beds that form the reservoir at nearby
Mereenie oil and gas field, and the Stairway Sandstone that is the
reservoir at the Palm Valley gas field are visible at surface in
the eastern part of EP145, along with the Horn Valley formation
that is recognised as an excellent source rock. These formations
can be mapped at surface and potential traps identified from data
including existing seismic and wells drilled in the permit. Seismic
data acquired after drilling indicates one of the wells drilled in
the permit was drilled off-structure and the West Walker structure
is a potential drilling target.
In EP 156, the planned and approved airborne survey is still
awaiting a suitable aircraft and a weather window. The summer
season brings hot air turbulence and this year there has also been
significant rainfall in the area which is unusual at this time.
New Zealand
Murchison
In 2016 Mosman received approval from NZPAM to modify the work
program whereby LiDAR replaced a licence condition to acquire
magnetic and gravity data. The approval process and weather
conditions resulted in some delay however the LiDAR survey was
completed, analysed, and the results have been subject to an
internal and two external reviews.
LiDAR has advanced the geological understanding of the permit.
It has indicated that the preferred well location may be the
testing of a large anticline in the Te Wariki area in the North
West of the permit. As a result 10 km of seismic acquisition will
now be acquired in the Te Wariki area to further delineate the
structure and optimise the well location. The alternative location
in Blackwater Valley, near existing wells with evidence of
hydrocarbons, is still a possible well location which will be
reviewed once the Te Wariki results are received.
The seismic acquisition is anticipated in Q2 2017 (subject to
contractor availability) and processing of the seismic data will
follow. The anticipated cost for acquisition and interpretation is
not expected to exceed AUD500,000.
Mosman is now also preparing to actively seek farm-in investment
to fund the drilling.
Petroleum Creek
The lower oil price and flow test results indicate the wells are
not commercial. The wells are monitored and if circumstances do not
change then the wells may be plugged and abandoned so that the
permit can be relinquished.
Taramakau
As a result of a strategic review (and as previously noted), the
Company has resolved to relinquish the Taramakau permit and focus
resources on the remaining permits in New Zealand and
Australia.
Competent Person's Statement
The information contained in this announcement has been reviewed
and approved by Andy Carroll, Technical Director for Mosman, who
has over 35 years of relevant experience in the oil industry. Mr.
Carroll is a member of the Society of Petroleum Engineers.
New Projects
Mosman continues to seek and evaluate oil and gas business
development opportunities, and a select number of potential
opportunities remain under review.
As part of this process, John W Barr, the Chairman attended a
resource focused conference in Vancouver with some 6,000 delegates.
Whilst there he also met with current, past and potential new
shareholders; as well as a number of investment groups and parties
offering farm-in opportunities.
The Company's Technical Director is currently in North America
reviewing specific projects.
The Board will provide further details if and when matters
progress to contract stage. It is not possible to be more
definitive at this time due to deal uncertainties and
confidentiality requirements.
Investments
Gem International Resources Inc. (TSX.V GI) (Gem)
Mosman owns eight million shares and eight million two year 15
cent (CAD) options acquired at a price of 5 (CAD) cents. GEM is
currently trading at 9.5 (CAD) cents.
Gem is focussed on a diamond project in Angola, and has recently
announced:
-- The completion of a private placement raising CAD$900,000 (18
million shares at 5 cents Canadian with an attached
non-transferable 15 cent Canadian two year option).
-- That it intends to carry out a further private placement raising $3,000,000.
-- An extension of the existing Angolan option, wherein the
potential kimberlite assets are now included with the current
alluvial assets.
-- An extension of the timetable in respect to the second raising and the Angolan option.
While in Vancouver the Chairman met with several large GEM
shareholders and also senior management to discuss in detail that
company's operations and potential. Mosman is pleased with the
extended option and the future plans, especially as kimberlites
have been identified that require exploration.
As a result Mosman decided to increase its shareholding by
subscribing to an additional 1.6 million shares (and 1.6 million
attached non-transferable 15 cent Canadian two year options) at a
cost of $80,000 (CAD) as part of the latest CAD$900,000
placing.
Mosman's total shareholding (9.6 million) will represent
approximately 16.5% of GEM's undiluted expanded share capital.
GEM reported an audited net loss of CAD$504,870 for the year
ended 30 September 2015 and net assets of CAD$13,762 as at 30
September 2015.
GEM's website can be found at: http://gemdiamondmining.com
Hemisphere Energy Corporation (TSX.V HME) (Hemisphere)
Mosman owns two million shares in Hemisphere, acquired at a
price of 19 (CAD) cents a share. HME is currently trading at 30.0
(CAD) cents.
Hemisphere is a well-managed existing established oil producer
with assets in south east Alberta, Canada that has recently
announced highlights from its independent reserves evaluation as at
31 December 2016; including:
-- A 36% increase in Proved plus Probable reserve value to $65.9
million and replaces 427% of 2016 production.
-- In 2016, Hemisphere's estimated average corporate production rate was 526 boe/d (86% oil).
While in Vancouver the Chairman, also met with the President and
Chief Executive Officer of HME to discuss in detail that company's
operations and potential. Mosman is pleased with this
investment.
Hemisphere's website can be found at:
www.hemisphereenergy.ca
Enquiries:
Mosman Oil & Gas Limited NOMAD and Broker
John W Barr, Executive Chairman SP Angel Corporate Finance LLP
Andy Carroll, Technical Director Stuart Gledhill / Richard 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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