17 October 2022
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Q1 Production Update
Excellent Results Achieved post Q1 from Workovers
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, announces its production summary for the three months ended 30 September 2022 ("Q1" or "September Quarter").
The Company has a portfolio of development and exploration projects, with a clear focus on maximising the opportunity for further production growth and increasing cashflow. In addition to its US 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.
US Production
Gross Production showed steady increases across the Company's projects save for the Falcon well which is currently shut-in pending a review. Net Production attributable to Mosman for Q1 was 6,958 boe (three months to 30 June 2022 of 8,815 boe). The results reflect continued strong production at Stanley and Winters. Notably, the loss of gas production at Falcon has been mitigated by higher value oil production increases at Stanley.
At Stanley, several recent workovers have increased both oil and gas production resulting in the recent five-day average gross production at Stanley and Winters combined achieving 193 bopd and 628 mcfd or circa 300 boepd in aggregate. That compares to 218 boepd (gross) in the June Quarter detailed below.
The priority this quarter has been increasing production at Stanley and drilling at Cinnabar. Priorities on all projects, including Falcon, will be reviewed when we have results from Cinnabar.
Production Summary
| | 3 Months to 30 September 2022 | 3 Months to 30 June 2022 | ||
| | boe | boe | ||
| | Gross Project Production | Net Production to Mosman | Gross Project Production | Net Production to Mosman |
| | Gross boe | Net boe | Gross boe | Net boe |
| | | | | |
| Stanley | 8,270 | 3,175 | 7,310 | 2,806 |
| Winters | 11,644 | 2,717 | 11,042 | 2,576 |
| Greater Stanley | 531 | 106 | 343 | 69 |
| Arkoma | 3,842 | 960 | 1,973 | 493 |
| Falcon | - | - | 3,828 | 2,871 |
|
Total boe |
24,287 |
6,958 |
24,496 |
8,815 |
The Net Production of 6,958 boe produced in the September Quarter consisted of 2,973 barrels of oil and 23,113 MMBtu of gas. The average sale prices achieved during the period was US$91.35 per barrel for oil and US$6.99 (July and August only) per MMBtu for gas (June quarter was US$109.24 and US$5.81, and in each case after transport and processing costs but before royalties).
Production numbers in the September 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.
John W Barr, Chairman, said: "Mosman is pleased to report a solid quarter of production, particularly factoring in the current halt in production at Falcon.
"We continue to make steady progress, with further development potential in existing leases. Notably, the recent workovers at Stanley and the expected results from the Cinnabar-1 well also provide optimism that the December quarter will be even stronger."
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 John W Barr, Executive Chairman Andy Carroll, Technical Director | NOMAD and Joint Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Adam Cowl +44 (0) 20 3470 0470 |
| Alma PR Justine James +44 (0) 20 3405 0205 +44 (0) 7525 324431
| Joint Broker Monecor (London) Ltd trading as OvalX Thomas Smith 020 7392 1432 |
Updates on the Company's activities are regularly posted on its website:
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 |
| 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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