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On 17 January 2022, Mosman Oil and Gas Limited announced an update regarding its Falcon-1 well, in which it holds a 75% working interest. An additional Frio sand zone was perforated at 7,457-7,460 feet, and the well flowed on test at 1,000 mcfd. With a 7/64 choke, the well produced an average of 576 mcfd (c 113 boepd gross) over the last five days, representing a 23% increase from the c 92 boepd (gross) average in the quarter ended 30 September 2021, and the company's current cash position is approximately AUD 1 million.
| Date | 17 Jan 2022 |
| Time | 08:44:46 |
| Category | Corporate updates |
| ID | 6533Y |
17 January 2022
("Mosman" or the "Company")
Falcon Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update in respect of its Falcon project which forms part of the Champion Project in East Texas. Mosman holds a 75% working interest in the Falcon-1 well, the first well to be drilled at the project.
At Falcon-1, an additional Frio sand zone has been perforated at a depth 7,457-7,460 feet. The well has flowed on test at a rate of 1,000 mcfd, but due to the current choke size of 7/64 it has been producing at an average rate over the last 5 days of 576 mcfd (c 113 boepd gross). To balance short term cashflow and long optimize gas recovery over time, the production strategy is to periodically increase the choke size and monitor wellhead pressures. The first increase in choke size planned for this this week is to increase the choke to 8/64.
The current production rate is an increase of 23% compared to average flow rate of c 92 boepd (gross) in the quarter ended 30 September 2021.
John W Barr, Chairman, said: "Mosman is making steady progress to meet our growth objectives, with another strong step forward with this strong increase in production at Falcon."
The costs of the recompletion were paid from existing cash reserves. The current cash position is c AUD 1 million.
Production numbers for the six months ending 31 December should be available in the next month, once all information has been received.
Mosman is awaiting results from recent drilling and other workovers. This information will be published when it is available.
Qualified 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.
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:
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Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director |
NOMAD and Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Adam Cowl +44 (0) 20 3470 0470 |
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Alma PR Justine James / Joe Pederzolli +44 (0) 20 3405 0205 +44 (0) 7525 324431 |
Joint Broker Monecor (London) Ltd trading as ETX Capital 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 seven projects in the US: Stanley, Greater Stanley, Livingston, Winters, Challenger and Champion in East Texas and Arkoma in Oklahoma in addition to exploration projects in the Amadeus Basin in Central Australia.