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Mosman Oil and Gas lines up next drilling projects as producing portfolio builds
Spudding of Stanley-3
5 August 2019
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Spudding of Stanley-3
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, is pleased to announce the spud of the Stanley-3 well in Texas.
Stanley-3 is the next well to be drilled as part of the Strategic Alliance with the privately owned Baja Oil & Gas, LLC ("Baja"). Stanley-3 is being drilled vertically to a TD of 5,100 feet. The primary objective is to reach the multiple Yegua sands at similar depths to those encountered in Stanley-1 and Stanley-2. Secondary objectives exist at shallower drilling depths above the Yegua reservoirs.
The total cost (for all participants) of drilling Stanley-3 is estimated to be c.USD325,000 and if commercially successful, an additional amount of approximately USD165,000 will be required for completion and tie in operations. Mosman will have at least a 14.85% working interest in the well. The well will be drilled on a turnkey contract basis.
Mosman's commitments to fund its portion of the well will be from existing cash resources.
John W Barr, Chairman, said: "Given the significant results of Stanley-1 and 2, the operator has quickly moved to Stanley-3 with the assistance of Mosman consultants and Baja. It is anticipated the well will be completed in a short period of time and the Initial Oil production will be seen by mid September.
"Mosman's clear intention is to increase production and thus cashflows as quickly as possible whilst taking into account operational and legislative requirements."
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.
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 / Soltan Tagiev
+44 (0) 20 3470 0470
Gable Communications Limited
Justine James / John Bick
+44 (0) 20 7193 7463
Updates on the Company's activities are regularly posted on its website www.mosmanoilandgas.com
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