Market Update: 6 January 2023
(Mosman Oil and Gas Ltd (AIM:MSMN)) - Positive initial flow rates
Energy Prices
Brent Oil US$78.7/bbl vs US$79.7/bbl yesterday
WTI Oil US$73.7/bbl vs US$74.6/bbl yesterday
Henry Hub Gas US$3.64mmBtu vs US$4.13mmBtu yesterday
UK NBP Futures 187p/therm vs 162p/therm yesterday
TTF Dutch Futures €76/MWh vs €67/MWh yesterday
- Crude oil prices edged lower as market data indicators continue to point to near-term oversupply as 2023 growth targets are shifted to the right on global demand concerns
- European energy prices edged higher on news that a cold weather front is bearing down on the Continent.
Research
(Mosman Oil and Gas Ltd (AIM:MSMN)) 0.07p, Market Cap £4.5m: Positive initial flow rates
- Mosman announced that the onshore Texas Cinnabar development well (75% WI) achieved an average 24hr gross flow rate of 120b/d and 0.18mmcf/d (a total of c.150boe/d) over 3 and 4 January.
- The well has produced over 1,000 barrels of oil to date and is now being connected to the existing production facility with larger tanks and gas separation that will allow stable rates to be established.
- Mosman has engaged independent consultants to update the Cinnabar reserve report with information from this well and planning has commenced for existing well workovers and the drilling of new development wells.
These initial flow rates are positive and the Company is now moving forward to full scale production and sales of both oil and gas at Cinnabar. If these rates are maintained, the Cinnabar development well has the ability to more than double existing net production and could be potentially transformational for Mosman, as it should be possible to drill several more wells at 40-acre spacing across its acreage to boost its group production and cash flow in the near-term.
*SP Angel acts as Nominated Advisor and Broker to Mosman Oil & Gas
Research
David Mirzai – David.Mirzai@spangel.co.uk – 0203 470 0473
Sales
Richard Parlons – Richard.Parlons@spangel.co.uk - 0203 470 0472
Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471
Rob Rees – Rob.Rees@spangel.co.uk - 0203 470 0535
Abigail Wayne – Abigail.Wayne@spangel.co.uk - 0203 470 0534
SP Angel
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Sources of commodity prices
Oil Brent - ICE
Natural Gas - NYMEX
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