Mosman Oil & Gas - Operations Update
("Mosman" or the "Company")
Global Events and Corporate Review
As previously stated, Mosman's business is not immune to the recent exceptional external events including Covid-19 and the fluctuating oil price.
In March, the Board concluded its review of all aspects of its operations and Mosman can now confirm that the cost reductions detailed in the announcement of
Growth opportunities including Stanley and Greater Stanley in
Business Plan, Assets Sales and Cost Reductions
As announced on
Mosman continues to pursue its refocussed corporate strategy and as part of this Mosman is looking at options to sell its
1. Production continues at Stanley. Current flow rates are approximately 20% lower than the average daily production previously announced for the 6 month period ended
The Operator has advised that in their opinion: "We believe the greatest impact will be in the monthly oil price we receive in May. In response we have created on-lease temporary oil storage using rented frac tanks, allowing us to continue to produce the wells while mitigating adverse near-term pricing."
The tanks add circa 5,000 Bbls of storage and the additional tankage gives the Operator the option of exercising some control over the timing of sales, with the objective of obtaining a better sales price, albeit deferring cash flow.
The Operator also has advised that in their opinion: "Regarding operating costs, many of the projects that we have completed in the past twelve months, such as improvements to the central processing facilities and reworking and upgrading the salt-water disposal system have materially lowered our operating cost. We believe our current cost structure will allow us to remain profitable with oil prices in the mid-teens."
The funds paid in respect to the proposed Stanley-4 well, have now been returned, net of incurred costs including planning and onsite groundwork. The intention is to drill the well when oil prices have increased to a suitable level, thus timing remains unknown.
2. At Greater Stanley, the plan remains to increase production by workovers on the existing producing wells. Recent production of circa 160 Bbls of oil per month (gross) is sufficient to hold the lease. Technical work suggests there may be potential to produce at higher rates from the Yegua sands.
3. At the
4. At the
The Legal action Mosman had instigated with the aim to recover funds from
There is no update on the shareholding in Norseman Capital Limited, other than the Norseman Board has advised they are reviewing several potential acquisitions to revitalise that company.
John W Barr, Chairman of Mosman commented: "The Mosman Board acted quickly and decisively in March and matters remain in accordance with that plan.
"Completing the potential sale of
Competent Person's Statement
The information contained in this announcement has been reviewed and approved by
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.
John W Barr, Executive Chairman
NOMAD and Joint Broker
+44 (0) 20 3470 0470
+44 (0) 20 3405 0205
+44 (0) 7525 324431
Updates on the Company's activities are regularly posted on its website: www.mosmanoilandgas.com
This information is provided by RNS, the news service of the
Quick facts: Mosman Oil And Gas Ltd
Market Cap: £996.69 k
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE