Headlines
- In Brief:
- Mosman Oil And Gas*** (LON:MSMN) (0.60p) – $9.80mm (1.63p) – Promising Results
- Union Jack Oil*** (LON:UJO) (0.09p) – $62.7mm (0.76p) – New Site Required for Holmwood
In Brief
- Mosman Oil and Gas*** (LON:MSMN) (0.60p) – $9.80mm (1.63p) – Promising Results: Today’s production update continues to build on the previous themes that the company has been developing, in increasing focus on the development of a stable cash generative base from which to grow. The next key observation point will be the Stanley (Livingston Oilfield, Polk County, Texas) which could produce up to 150bpd. The follow-up testing an interpretation will elucidate how much of the 150bpd can be achieved, and for how long. As with all these projects, once the performance basics have been assessed, management will tie the threads together and outline the future performance froth the Wells, and what these results mean for the respective fields. We believe that these results continue to underline the Company’s efforts to focus on cash-generating projects.
- Union Jack Oil*** (LON:UJO) (0.09p) – $62.7mm (0.76p) – New Site Required for Holmwood: Today’s announcement, that the Head of Estates at the Forestry Commission that the Minister for the Environment, Food and Rural Affairs, has decided not to renew the lease at Bury Hill Wood, Coldharbour Lane, is disappointing. While this will inevitably delay the drilling of the well, it currently has no impact on our estimate for the timing (exploration well spudding 2020). Nevertheless, we continue to be concerned that this is be symptomatic of the growing weariness with the planning cycle and harassment that onshore oil and gas faces in the UK, mostly from people who (curiously) utilise an impressive array of manmade oil-based materials in their tents, banners and electronics. While disappointing, today’s news does not (yet) alter our timing for the well. Consequently, our valuation for the company remains $62.7mm (0.76p).
We may provide a further update on one, or all, of the stories above later today. However, if there is anything that you would like to discuss, please feel free to contact us.