Mosman Oil and Gas to extend New Zealand exploration programme

Mosman Oil and Gas Limited, the New Zealand and Australia focussed oil exploration and development company has raised around £3 million through a placing of 13 million new shares at 23p each.

Increase oil and gas exploration

The funds raised will be used to increase the exploration programme at the Petroleum Creek Project in New Zealand, with the addition of a potential fourth and fifth exploration well and acquiring seismic in 2014. The additional wells will focus on targets, which were identified by our consultant geologist and confirmed in the independent report undertaken by SRK Consulting (Australasia) Pty Ltd. The Directors of Mosman believe this activity will complement the successful CrossRoads-1 Oil Discovery that was announced on 13 June 2014.

In light of the success at CrossRoads-1, consideration is being given to appraisal work such as additional seismic to define and delineate the Cross Roads-1 and adjacent prospects which may be part of the same oil accumulation. Mosman is also considering technical changes to future well programmes based on recent information from Cross Roads-1, both to optimise exploration and facilitate well testing and to design them to be utilised as production wells once appraisal and economic studies are completed. The company is contracting engineering consultants to complete the design review and recommendations will be reviewed and implemented. Any changes in well design may result in additional equipment procurement and/or approvals.

Two additional wells

The company has commenced negotiations with land owners to secure land access and clearances to the two additional proposed well sites. Good relationships with existing contractors mean the existing team, equipment and personnel will be available to maximize the 2014 exploration programme.

Further permits in New Zealand

Finally, Mosman will bid for further permits in the 2014 Block Offer which is being conducted by New Zealand Petroleum & Minerals (‘NZPAM’) which manages the New Zealand Government’s oil, gas, mineral and coal resources. In addition and in line with Mosman’s strategy to explore wider opportunities for the acquisition of licences and hydrocarbon assets, the Company is currently conducting due diligence on several potential acquisitions and the funds raised will assist in that process.

Adapted from press release by Cecilia Rehn

Read the article online at: https://www.oilfieldtechnology.com/exploration/20062014/mosman_oil_and_gas_to_extend_new_zealand_exploration_programme/