Big picture - Why invest in Mosman Oil And Gas
Mosman Oil And Gas Snapshot
Mosman operates in politically stable countries with a strategy of expansion through Organic growth (exploration of existing permits) and Strategic growth (acquisition of new permits, mergers or takeovers).
Exploration in New Zealand commenced in 2014 at the Petroleum Creek Project. This resulted in Discoveries being reported.
As a result of the 2014 Block Offer, the permits in New Zealand were expanded including Murchison.
Exploration in Australia will continue on projects with exploration at the Officer Basin Project to commence subsequent to the conclusion of native title negotiations.
Subsequent to Admission, Mosman has completed additional placings; the acquisition of additional permits in Australia; a takeover bid for Trident Energy Limited; and successfully bid for three additional permits in New Zealand.
The Company's objective is to build a sustainable mid size oil company in the next two to three years by means of organic growth and acquisitions.
New Zealand Oil & Gas
New Zealand is ranked 8th in the world for its abundant natural resources (World Bank 2010), ranked top in the world for least corrupt government (Transparency International, 2012) and is ranked first in the world for investor protection (World Bank 2013).
Mosman requested NZP&M to release new exploration areas in 2014. These areas formed part of the 2014 block offers which was a competitive bidding process. Mosman was successful in securing three new permits.
New Zealand Legislative Framework
The Crown Minerals Act 1991 (“Minerals Act”) sets out the broad legislative framework for the exploration and production of petroleum within New Zealand. The relevant regulations for petroleum permit holders are the Crown Minerals (Petroleum) Regulations 2007, the Crown Minerals (Petroleum Fees) Regulations 2006, and the Crown Minerals (Royalties for Petroleum) Regulations 2013.
New Zealand's royalty regime stipulates the payment of either an ad valorem royalty (AVR) or an accounting profits royalty (APR), depending on whichever is the greater in any given year. The royalty rates are either:
a) 5% AVR, that is 5% of the net revenues obtained from the sale of petroleum, or
b) 20% APR, that is 20% of the accounting profit of petroleum production.
Petroleum Creek Project 100% Interest
Mosman owns PEP 38526 in New Zealand which has an area of 143.6sq km. The area is known for the largest natural oil seeps in New Zealand.
The PEP is located near Greymouth on the South Island in the southern extension of the proven Taranaki oil system. In the northern side of Taranaki there are some 20 fields which have produced in excess of 400 mmbbls of oil and 60,000 bcf of gas.
Exploration work undertaken at the Petroleum Creek Project in 2014 included the drilling of three wells which resulted in Discoveries being reported to NZPAM. Further exploration included the acquisition of new seismic data and the reprocessing of all existing seismic.
Geography and Infrastructure
The Project is located onshore in the Stillwater-Moana area of the West Coast of the South Island east of Greymouth. The Arnold River bisects the Permit north northwest-south southeast, and several roads exist within its area including the east-west State Highway 7 in the northern part. Vegetation comprises open farmland pasture, native bush and lowland forest.
The south eastern corner of the Project has been subjected to a long history of exploration with drilling starting in 1902. A total of around 58 shallow wells are documented to have been drilled within or close to the PEP. Many of these wells were drilled prior to 1940 and data is therefore limited.
In early 2014 Mosman commissioned SRK to integrate all available data into a single integrated petroleum model that mapped 22 leads and prospects over the Kotuku anticline.
That meant for the first time, that Mosman is aware of, all data was now in one model.
For more informaiton, please click here
Mosman owns two granted Permits and one application in the Amadeus Basin in Central Australia. Mosman’s holdings cover a total of 5,458 sq. km.
The Amadeus Basin is considered one of the most prospective onshore areas in the Northern Territory of Australia for both conventional and unconventional oil and gas, and hosts the producing Mereenie, Palm Valley and Surprise fields.
EP156 Eastern Amadeus
Located in the Northern Territory of Australia, EP156 covers an area of 4,164 sq. km and is granted for a term of five years. EP156 currently has no defined Prospects although there are several leads and an area of unconventional hydrocarbon potential. The licence is in its second year and contains three synclines comprising largely of Cambrian-Ordovician age rocks. Ordovician age reservoirs are responsible for the commercial production within the Amadeus Basin.
A report by independent consultants SRK Consulting (Australasia) Pty Ltd (“SRK”) states that, ‘EP156 likely contains significant and strategically located unconventional hydrocarbon potential, associated with the Palaeozoic shales plus additional hydrocarbon potential exists in the form of conventional anticlinal closures in the Neoproterozoic rocks observed from surface outcrop mapping.’
Work commenced on this Permit in 2014.
Significant gas fields that are located south west of EP156 are:
The Dingo Gas field, discovered in 1981 is 65kms SE of EP156, and has currently30.1 PJ reserve (e.q. 5.1MMBOE), production license was granted recently and a new 50km pipeline is being built; and
Central Petroleum Limited has gas discoveries that flowed-to-surface at Ooraminna and is 35kms SE EP156. It also displayed a Helium credit in excess of 4%. Rodinga was also an oil show, and was in the vicinity of the EP156.
A number of prospective leads have been outlined by SRK on EP156.
The 818 sq. km permit contains a significant anticline (named West Walker), of over 30km in length. The anticline itself hosts Ordovician through to Neoproterozoic stratigraphy open at various levels. The significance of the geology is its proximity to the nearby Mereenie oil and gas field, which produces from the Ordovician Pacoota Sandstone unit.
Two wells have been drilled on the anticline, the first West Walker -1 tested the western end of the feature based on a poorly definied seismic grid in 1982, but flowed wet gas to surface at a rate of 3.5MMscf/d from the Pacoota Sandstone, the main producing reservoir in the Mereenie Field. A follow up well drilled, called Tent Hill -1 (1984), located to the southeast on the same anticline (and very poor seismic grid was deemed unsuccessful, although oil was observed weeping from cores.
Further seismic definition is required to understand the nature and size of this structure, thus the size of any hydrocarbon pool. It is very significant that the gas encountered in West Walker-1 was wet, and of a similar composition to that of the gas cap at Mereenie, which has a significant oil leg, yet not as dry as the gas encountered in nearby Palm Valley gasfield which has no oil leg. No gas/fluid contact was encountered in West Walker-1, allowing for the potential of an oil column beneath the gas column, creating substantial material upside for Mosman to explore in the future.
SRK are currently finalising a report into the prospective resources contained in the permit which will greatly assist in confirming the permits prospectivity and will enable prioritisation of future exploration activities. This report is due in March 2016.
EP(A)155 Mount Winter
Located 135 km from EP156, within the prime Horn Valley Siltstone fairway between the Mereenie and Surprise Oil Fields, EP(A)155 covers 378 sq. km and contains the historical wells Mount Winter 1 and 1A that reported oil shows1. Seismic and well data comprise limited 2D seismic lines and two wells, one with oil shows. These oils shows were recorded within two formations:
The first trap with oil shows was in the Stairway Sandstone. The Stairway is the production layer (reservoir) at Surprise 1REH1. These tight conventional formations with good porosity but low permeability can flow-to-surface with new technology, and in particular multi-staged stimulation and horizontal drilling; and
A second trap was discovered in the Bitter Springs Formation determined to be of the Johnny Creek Beds petroleum bearing unit. Oil shows here again were not flowed to surface as the technology to do so did not exist. There are also deeper formations which were not tested such as the Pacoota and deeper plays.
EP(A)155 is an exploration permit application; as such it is subject to successful land access negotiation with the Traditional Owners prior to the grant of the permit.
EP(A) 155 is located close to the Surprise Oil field operated by Central Petroleum (ASX: CTP). Santos operates the Mereenie field, which has produced over 16 million barrels of oil and condensate and over 240 billion cubic feet of gas since 1984. Santos has operated the field since 1993.
Proposed Gas Pipeline
The Northern Territory Government is progressing on the development of a gas pipeline and has recently selected a construction partner and an operations partner for the Northern Gas Pipeline to connect NT to eastern states gas markets.
John W Barr, B.Bus (Acc.), CA, FAICD, Executive Chairman
John is the founder of the Company, based in Perth, Western Australia. John is a Chartered Accountant and Fellow of the Australian Institute of Company Directors and has acted as director of listed and unlisted companies for over twenty five years.
He has specialised in the management of companies including advice on capital raisings, mergers and acquisitions, negotiating onshore and offshore acquisitions and joint ventures, negotiating commodity based funding, and compliance with corporate and stock exchange requirements.
John worked extensively in starting up and building resource businesses, historically in mining. Prior to founding Mosman, he was Chairman of TNG Limited and, previously, Thor Mining PLC as well as several Australian listed companies including Sherwin Iron Limited (formerly Batavia Mining Limited). John was one of the founding Directors of Aquarius Platinum Ltd and negotiated various transactions on behalf of Aquarius (including the Penny West high grade gold deposit and the Awak Mas project in Indonesia). He was actively involved in the acquisition of the Aquarius platinum leases in South Africa, and the disposal of Lone Star Exploration generating a material profit for Aquarius. His roles at Aquarius also included the appointment and handover to a successful operational management team.
He has extensive Australian and international experience with exposure to manufacturing, mining and mineral exploration and development in respect to several commodities. He also has direct experience at senior management levels in a variety of industries.
John W Barr has responsibility on the board for the finance function of the Group.
Andy Carroll, BA, MA (Engineering) Cambridge, Technical Director
A mechanical engineer by background, Andrew has spent his career in the oil industry, initially with BP. He is currently managing director of Australasian Energy Pty Ltd.
He has worked in Australasia for more than 20 years. Andrew's role at Ampolex Limited included proposing PNG gas developments to the Pandora and Kotuku joint ventures, which have now become an ExxonMobil c.$20bn liquefied natural gas development. Andrew was headhunted to InterOil Corporation to run its Papua New Guinea exploration business; discoveries were made in 2002 resulting in material share price appreciation. His more recent activities have included a number of successful smaller groups – Great Artesian Oil & Gas Ltd, Petroleum Exploration Australia Pty Ltd (sold in 2008) and founding director and former managing director/chief executive officer of the Phoenix Oil and Gas Limited royalties business.
His expertise covers a wide range of the energy business, with particular expertise in oil and gas, from permit applications and initial exploration operations including drilling, to development, production and marketing of oil and gas. This includes taking InterOil Corporation from applying for permits to discovery of a new petroleum system in PNG. Andrew also advised AGL Energy Limited in establishing an exploration and production business with acquisition and operations of coal seam methane assets including Sydney Gas, and Moranbah. International experience includes UK, Canada, Australia, NZ and PNG.
John A Young, B App Sc (Geol), Grad Dip Tech Management, MAUSIMM, Non-executive Director
John Young is a geologist with 25 years' experience in resource project management and corporate management. He is a member of the Australian Institute of Mining and Metallurgy and has worked on wide variety of mineral and resource projects throughout Australia and overseas.
In addition, John has held senior management and operational positions. He is currently Exploration Manager of Arunta Resources Limited and Principal Geological Consultant to Pilbara Minerals Limited. Both exploration companies are listed on the ASX, the latter a company focused on specialty metals and gold exploration in the Pilbara of Western Australia and in Papua New Guinea.
Suite 1, Gunshot Alley
Mosman NSW 2088
For Operational Enquiries
Telephone: +61 2 9210 4600
Suite 305, Level 3
35 Lime Street
Sydney NSW 2000
For Shareholder Enquiries
Telephone: +61 2 8296 0000
John W Barr
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