Mosman Oil and Gas announces exploration update

As advised previously activities have been fiscally restrained in 2016 due to the need to maximise the value received for every dollar spent, whilst continuing to make progress especially on the EP 145, EP 156 and Murchison permits.

Australia

Amadeus Basin Permits

Mosman owns and operates two granted permits (EP 145 & 156) and one application (EPA 155) which total 5458 km². In March 2016 SRK Consulting (Australia) (SRK') reported on the prospective resource contained in permit EP 145 which is on trend with the existing producing Mereenie oil and gas field owned by Central Petroleum.

In the region, work has begun on procurement for the Northern Gas Pipeline to connect the Northern Territory pipelines to the East Coast gas markets. It is also noted that Central Petroleum Limited, which is the largest onshore gas producer in the Northern Territory, has received an unsolicited, indicative and non-binding proposal from Macquarie Group.

Fieldwork has recently recommenced in permit EP145, to further assess hydrocarbon prospectivity. Dr Ian Dyson, an expert in the geology of the Amadeus basin, is currently conducting the field work in the permit area with a report due in the first quarter of 2016. The Pacoota Sandstone beds that form the reservoir at nearby Mereenie oil and gas field and the Stairway Sandstone that is the reservoir at the Palm Valley gas field are visible at surface in the eastern part of EP145, along with the Horn Valley formation that is recognised as an excellent source rock. These formations can be mapped at surface and potential traps identified from data including existing seismic and wells drilled in the permit.

Dr Julie Daws, (Mosman's Senior Geoscientist), and Andy Carroll (Technical Director) recently spent time with Dr. Dyson on site to further explore the geology and conduct a review.

Following on from the permit application for EPA 155, meetings were also held with the Central Land Council (CLC) in Alice Springs, part of the normal negotiation process prior to grant of an exploration licence. The team also visited the Department of Mines office and inspected core samples from relevant wells in and around EP145, at the core store.

In EP 156, the planned airbourne survey contract will take place once the aircraft is in the area in order to enable mobilisation and demobilisation costs to be shared.

New Zealand

In early 2016 Mosman received approval from NZPAM to carry out a LiDAR survey. The NZPAM approval was for a Change of Condition whereby LiDAR replaced a licence condition to acquire magnetic and gravity data.

The LiDAR survey is designed to assist in firming up the structural geology interpretation on the Permit, and thus further assist with specific well locations for future drilling on the permit.

The initial LiDAR was completed in July 2016 and the processing and analysis of the results produced generally confirmed the structural geological model and demonstrated the usefulness of the data. As a result a second contract was signed with consultants GNS Science, in which the analysis has been extended to cover additional areas of prospectivity.

As a result of the LiDAR analysis completed to date, Mosman's technical team are now working on finalising preferred drill locations and a timing schedule for Board review and approval. Initial discussions have also commenced with drilling contractors to determine availability and to review costings.

A site visit to the Petroleum Creek area confirmed there has been no apparent adverse effect following the recent earthquake.

For more information, please visit: http://mosmanoilandgas.com

Read the article online at: https://www.oilfieldtechnology.com/exploration/18112016/mosman-oil-and-gas-announces-exploration-update/