31 July 2019
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Six Month Production Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, provides the following production information, highlighting an 81% net increase in attributable production to Mosman for the six months ending 30 June 2019.
Production Summary
Gross production for the six months ending 30 June 2019 was 37,811 boe and the Net Production attributable to Mosman was 11,742 boe.
Gross production for the year ending 30 June 2019 was 55,508 boe and the Net Production attributable to Mosman was 18,216 boe.
Compared to the six-month period ended 31 December 2018 Net Production attributable to Mosman increased 81%.
Additionally, Net Production attributable to Mosman for the year ended 30 June 2019 increased 138% from the previous year.
The results reflect both the increase in the number of producing wells and continued increases in production rates at the projects that Mosman has ownership in.
Production subsequent to six-month reporting period
Mosman also highlights the increase in Production at the Stanley project in July 2019.
In July 2019, (with Stanley 2 having been recompleted and on production from 4 July), the Stanley project has produced 6,010 boe (Gross) representing a Daily average Gross production of 215 BOEPD. This compares to the Stanley Gross production of 14,153 in the six-months and represents a Daily average Gross production of 79 BOEPD during the six-month period to 30 June 2019 (although this period was impacted by workovers).
Mosman further advises that in the seven days ending 28 July 2019 this average has increased again to over 233 boe.
Further production increases are expected from the drilling of the Stanley-3 well which is due to spud shortly, and the Falcon-1 well which is due to spud in the current quarter.
Production at the other projects appears to be in line with expectations and reported historic production.
Production (6 months ended 30 June 2019)
Total Gross Production was 37,811 boe an increase of 106% (18,253, six months to 31 December 2018).
Net Production attributable to Mosman was 11,742 boe an increase of 81% (6,476, six months ended 31 December 2018).
Further details are outlined below:
|
6 Months to 30 June 2019 |
6 Months to 30 June 2019 |
|
Total Project Basis |
Net Production Attributable to Mosman |
|
Gross BOE |
Net BOE |
Stanley |
14,153 |
2,353 |
Welch |
6,210 |
4,760 |
Arkoma |
16,945 |
4,227 |
Strawn* |
503 |
402 |
Total BOE |
37,811 |
11,742 |
|
12 Months to 30 June 2019 |
12 Months to 30 June 2019 |
|
Total Project Basis |
Net Production Attributable to Mosman |
|
Gross BOE |
Net BOE |
Stanley |
20,224 |
3,355 |
Welch |
11,347 |
8,697 |
Arkoma |
22,911 |
5,343 |
Strawn* |
1,026 |
821 |
Total BOE |
55,508 |
18,216 |
* Strawn project was sold at the end of June 2019
John W Barr, Chairman, said: "Mosman continues to grow its production with a significant 81% increase in H2 over the first half which reflects general increases in production and the Stanley wells.
"The further increases at Stanley in July 2019 are particularly pleasing and this, combined with the two further wells which are due to be drilled this quarter using existing cash resources, provides further exciting growth opportunities.
"The horizontal wells at Welch remain subject to funding, where options are being reviewed, including a farmout. Planning continues for other additional wells."
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.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside
information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Enquiries:
Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director [email protected] [email protected] |
NOMAD and Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Soltan Tagiev +44 (0) 20 3470 0470 |
Gable Communications Limited Justine James / John Bick +44 (0) 20 7193 7463 [email protected] |
Joint Broker SVS Securities Plc Tom Curran / Ben Tadd +44 (0) 203 700 0078 |
Updates on the Company's activities are regularly posted on its website www.mosmanoilandgas.com
Production by Project
The below table is an unaudited summary of production by project for the period described. The below figures are prepared by management using established industry practice.
|
6 Months to 30 June 2019 |
6 Months to 30 June 2019 |
|
Total Project Basis |
Net Production Attributable to Mosman |
|
Gross BOE |
Net BOE |
Stanley |
14,153 |
2,353 |
Welch |
6,210 |
4,760 |
Arkoma |
16,945 |
4,227 |
Strawn |
503 |
402 |
Total BOE |
37,811 |
11,742 |
|
6 Months to 31 December 2018 |
6 Months to 31 December 2018 |
|
Total Project Basis |
Net Production Attributable to Mosman |
|
Gross BOE |
Net BOE |
Stanley |
6,071 |
1,002 |
Welch |
5,137 |
3,937 |
Arkoma |
5,996 |
1,117 |
Strawn |
1,049 |
420 |
Total BOE |
18,253 |
6,476 |
Definitions
BOE or boe |
Barrels of oil equivalent |
BOEPD |
Barrels of oil equivalent per day |
Daily Average Gross Production |
Average of barrels of oil equivalent per day over the period |
Gross Sales |
Reference to sales is boe that has been sold from the project throughout the period |
Net Sales Attributable to Mosman |
Mosman's portion of Gross sales less royalties owed to leaseholders |
Net Production Attributable to Mosman |
Mosman's portion of Total Gross Production less royalties owed to leaseholders. |
Total Gross Production |
boe produced on the project throughout the period. Includes oil still held as inventory |
Total Project Basis |
Refers to performance of Sales or Production on a 100% basis of the four projects that Mosman has invested in. |
