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Mosman Oil & Gas surges after Amadeus Basin update

EP 145 is near to several oil and gas producing fields and key infrastructure, including a gas pipeline connecting the gas fields to Alice Springs and Darwin
Gas pipeline
A pipeline is being built to connect to gas markets in Eastern Australia.

Seismic processing at exploration permit (EP) 145 in the Amadeus Basin has produced excellent results, Mosman Oil And Gas Ltd (LON:MSMN) declared.

The reprocessing of data from has confirmed the shallow multi-pay-zone anticline at EP145, similar to the reservoir zones at the nearby Mereenie oil and gas field and also revealed information at deeper levels.

WATCH: Mosman Oil & Gas reports 'excellent' results from seismic reprocessing at Amadeus Basin permit

This new information includes indications of a salt diapir – a geological structure made up of mobile material - that may provide the sort of trapping mechanism found in the Gulf of Mexico, and also deeper information that may allow Mosman to link this permit to the large Dukas prospect to be drilled by Santos in the Southern Amadeus Basin in the next 12 months.

Mosman said revisiting the seismic data has delivered better definition than originally anticipated, especially of the deeper zones. Mosman reckons there is evidence that the anticline up-thrust is a result of salt tectonics.

Stage One of the work will continue to include nearby deep well data and seismic interpretation. Given the excellent results so far, Mosman is considering extending the work to Stage Two, including reprocessing the 1991 seismic data.

Meanwhile, the Northern Territory government has given the nod to Mosman that its request to extend the time frame of the permit has been approved.

The principal work programme is now:

  1. Acquiring and processing 100 km of 2D seismic by 21/08/2019
  2. Drilling one well by 21/08/2020
  3. A second well by 21/08/2021

The extended timetable allows more time for the geologists to do their thing and for the financiers to work on the most effective way to fund the work programme, including exploring the possibility of a potential farm-out or joint venture.

"The recent work and the permit extension at EP145 are good news for Mosman. In addition to the US production assets, Mosman still continues to advance its other permits in accordance with its stated strategy,” said John Barr, Mosman's chairman.

Barr added that Mosman is greatly encouraged by recent and proposed industry activity in the Amadeus Basin.

Shares in Mosman shot up 10% to 0.82p on the news.

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