Mosman hungry for further acquisitions

Oil exploration, development and production company Mosman Oil and Gas updated the market on its strategy and operations on Monday, confirming that two acquisitions were completed in the last quarter with “other potential acquisitions” remaining under review.

The AIM-traded firm said its strategic objective remained to identify opportunities which will provide operating cash flow and have further development upside, in conjunction with adding value to our existing exploration permits.

In the US, it said since commencing as operator at Strawn in Texas, where it had a 50% interest, its country subsidiary had undertaken maintenance on the site in addition to well workovers, with further workovers scheduled in August.

Oil production for July 2017 was 440 bbls gross, achieved with some weekly variability as the workovers were completed.

A second shipment and sale of 177 bbls gross was achieved with around 650 bbls gross of oil remaining in the inventory.

“Work is continuing on-site to collate information to enable the existing database to be expanded, in order to facilitate the ranking of further production enhancement opportunities,” Mosman’s board said in its statement.

“Near term possibilities include surface facility improvements bringing additional existing wells back on production.

“Longer term potential being considered includes infill wells, horizontal wells, and waterflood.”

At the Arkoma Stacked Pay Project in Oklahoma, where the company had a 10% interest with options over a further 45%, Mosman said its focus remained the technical work to estimate the resources and to make the next investment decision in October.

It said the 3D seismic data had been received, and the geological model was being populated with data.

“On-site, the operator continues work to bring more wells on production and these activities are closely monitored with regular reporting and site visits by Mosman consultants,” the board said.

“Mosman remains happy with the quality of the work being completed.”

The Amadeus Basin Permits in Australia, where Mosman owns and operates two granted permits - EP 145 and 156 - and one application - EPA 155 - the board said the Northern Gas Pipeline had commenced construction, and from 2018 would provide access for Northern Territory gas to markets in Eastern Australia.

At EP145, it said the field geologist report had recently been received.

“Importantly, the extensive report extends the geological information and exploration potential.

“The next step is to review the report in more detail and plan the future work programme.”

At EP 156, it said the airborne survey data had been received and would be shortly interpreted, and the data utilised to update the existing geological model, and at EP155 it said the next step in was to obtain native title approval, with a site visit scheduled for later this year.

Across the Tasman Sea in New Zealand, the Mosman board said it remained in discussions with New Zealand Petroleum and Minerals - the state regulator - regarding the timing of the planned work programme, and the requested change of conditions for the permit.

“Mosman continues to actively pursue farm-in investment to fund drilling,” the board added.

“Marketing of the farm-in is currently being conducted through industry consultants and a media agency that works with NZPAM and other companies in New Zealand.”

At Petroleum Creek, the company said planning was continuing for the three wells drilled to be plugged and abandoned.

It said it expected that a suitable rig would be available in the September quarter to complete the tasks.