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Mosman Oil & Gas #MSMN – says Winters-2 well could be one of the biggest producers in its portfolio

Mosman Oil and Gas Ltd (AIM:MSMN)’s Andy Carroll speaks to Proactive following the news the Winters-2 well in Polk County, Texas was drilled to target depth and encountered potential pay in the Yegua and Wilcox sands. It was drilled to the target depth of 7,011 feet and wireline logs, side wall cores and formation pressure tests have been completed. The drilling rig has now moved on to the Stanley-5 well location.

https://www.proactiveinvestors.co.uk/companies/news/964243/mosman-oil-gas-says-winters-2-well-could-be-one-of-the-biggest-producers-in-its-portfolio-964243.html

Mosman Oil & Gas #MSMN – Stanley-5 Spud

MSMN

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, announces that the Stanley-5 well in Polk County, East Texas has now been spudded.

Stanley-5 is a development well targeting the Yegua formation, at approximately 5,000 feet.

Mosman’s interest in this well is c36.5% and will fund its share of the USD 350,000 drilling costs from existing cash resources.

Qualified Person’s Statement 

The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman, who has over 35 years of relevant experience in the oil industry. Mr. Carroll is a member of the Society of Petroleum Engineers.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside is now considered to be in the public domain.

Enquiries:

Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director

jwbarr@mosmanoilandgas.com acarroll@mosmanoilandgas.com

NOMAD and Broker

SP Angel Corporate Finance LLP

Stuart Gledhill / Richard Hail / Adam Cowl

+44 (0) 20 3470 0470

Alma PR

Justine James / Joe Pederzolli

+44 (0) 20 3405 0205

+44 (0) 7525 324431

mosman@almapr.co.uk

Joint Broker

Monecor (London) Ltd trading as ETX Capital Thomas Smith

020 7392 1432

Updates on the Company’s activities are regularly posted on its website:

www.mosmanoilandgas.com

#MSMN Mosman Oil & Gas – Winters-2 Drilling Update

 

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update on the Winters-2 well in Polk County, Texas.

Further to the announcement made on 11 October, Mosman advises that Winters-2 was drilled to the target depth of 7,011 feet. Wireline logs, and side wall cores, and formation pressure tests were completed.

The report from on-site is that based on this data, the Winters-2 well has encountered potential pay in the Yegua and Wilcox sands. The well is being completed in the Third Wilcox which has a gross thickness of 54 feet (6,770-6,824 feet).

Information on flow rates will be made available when known, which will not be until after production facilities are installed.

The drilling rig will move to Stanley-5 location and that well is anticipated to commence drilling next week.

Qualified Person’s Statement

The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman, who has over 35 years of relevant experience in the oil industry. Mr. Carroll is a member of the Society of Petroleum Engineers.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside is now considered to be in the public domain.

Enquiries:

Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director

jwbarr@mosmanoilandgas.comacarroll@mosmanoilandgas.com

NOMAD and Broker

SP Angel Corporate Finance LLP

Stuart Gledhill / Richard Hail / Adam Cowl

+44 (0) 20 3470 0470

Alma PR

Justine James / Joe Pederzolli

+44 (0) 20 3405 0205

+44 (0) 7525 324431

mosman@almapr.co.uk

Joint Broker

Monecor (London) Ltd trading as ETX Capital Thomas Smith

020 7392 1432

#MSMN Mosman Oil & Gas – Stanley-5 well update

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update on the Stanley-5 well in Polk County, East Texas.

The well is now scheduled to be drilled after the current well at Winters is completed and the rig is relocated the short distance to Stanley-5.

Stanley-5 is a development well targeting the Yegua formation, at approximately 5,000 feet. Following the acquisition of Nadsoilco LLC in July this year, Mosman’s interest in this well will be c36.5%. Mosman will fund its share of the USD 350,000 drilling costs from existing cash resources.

 

John W Barr, Chairman, said: “Mosman is pleased with the current drilling activity that we had planned for this year to achieve the strategic objective of increasing production.”

Qualified Person’s Statement 

The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman, who has over 35 years of relevant experience in the oil industry. Mr. Carroll is a member of the Society of Petroleum Engineers.

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside is now considered to be in the public domain.

Enquiries:

Mosman Oil & Gas Limited 

John W Barr, Executive Chairman Andy Carroll, Technical Director

jwbarr@mosmanoilandgas.com acarroll@mosmanoilandgas.com

NOMAD and Broker

SP Angel Corporate Finance LLP

Stuart Gledhill / Richard Hail / Adam Cowl

+44 (0) 20 3470 0470

Alma PR

Justine James / Joe Pederzolli

+44 (0) 20 3405 0205

+44 (0) 7525 324431

mosman@almapr.co.uk

Joint Broker

Monecor (London) Ltd trading as ETX Capital Thomas Smith

020 7392 1432

Alan Green covers news from Tesco #TSCO, Cadence Minerals #KDNC & Mosman Oil & Gas #MSMN

vox podcast

Alan Green covers news from Tesco #TSCO, Cadence Minerals #KDNC & Mosman Oil & Gas #MSMN

https://www.voxmarkets.co.uk/articles/alan-green-covers-news-from-tesco-cadence-minerals-mosman-oil-gas-65652ce/

#MSMN Mosman Oil & Gas – Spud of Winters-2 Well

MSMN

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces the spud of the Winters-2 well in Polk County, Texas.

The Winter-2 well is now drilled to 1,445 feet with surface casing cemented. The intention is to drill to target depth in the next week. Casing has been purchased in preparation to complete the well. Any production flow rates will be announced when they are available.

Nadsoilco LLC, (“Nadsoilco”) holds a c29% interest and is the Operator of the Winters lease. Nadsoilco is a 100% owned subsidiary of Mosman.

Nadsoilco is Operator of this well and has an effective c.23% working interest in this well.

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute

inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside is now considered to be in the public domain.

Enquiries:

Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director

jwbarr@mosmanoilandgas.com acarroll@mosmanoilandgas.com

       NOMAD and Broker

       SP Angel Corporate Finance LLP

       Stuart Gledhill / Richard Hail / Adam Cowl

       +44 (0) 20 3470 0470

Alma PR

Justine James / Joe Pederzolli

+44 (0) 20 3405 0205

+44 (0) 7525 324431

mosman@almapr.co.uk

        Joint Broker

        Monecor (London) Ltd trading as ETX Capital Thomas Smith

        020 7392 1432

Mosman Oil & Gas #MSMN – Winters-2 well update

 

MSMN

Winters-2 well update

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update on the Winters-2 well in Polk County, Texas.

Further to the announcement made on 21 September, Mosman confirms the equipment to drill the well has started to arrive onsite. Spud is expected in the next few days and the drilling is scheduled to take 7-10 days. A further update will be made upon completion of drilling.

Background of Winters Lease

Mosman first acquired an interest in the Winters lease as part of its purchase of Nadsoilco LLC, (“Nadsoilco”) in June 2021. Following a subsequent acquisition of an additional working interest in July 2021 Nadsoilco now holds a 29% interest in the lease. Nadsoilco is a 100% owned subsidiary of Mosman and is the Operator of the Winters lease which is held by production with circa 969 bbls of oil sold in the last 12 months from the Winters-1 well.

Nadsoilco has been ready to drill the Winters-2 well on the Winters Lease for some time and has been awaiting the arrival of the drilling rig which was delayed due to the impact of the covid-19 pandemic. The Winters lease holders have agreed to share the participation in the Winters-2 well (not the lease) with the owners of the adjacent lease operated by Arcadia (the “Arcadia Parties”). The Winters lease holders will have a 78% working interest and the Arcadia Parties will have a 22% working interest in the well. Therefore Mosman, through Nadsoilco, will hold an effective c.23% working interest in this well.

Winters-2 well

Winters-2 is a 7,000 foot development well in which the primary target is the Wilcox formation that is producing oil in adjacent wells (on other leases not held by Mosman). The turnkey aggregate cost for drilling the well is now expected to be c USD 700,000 (Mosman’s share c.USD 160,000).

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute

inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside is now considered to be in the public domain.

Enquiries:

Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director

jwbarr@mosmanoilandgas.com acarroll@mosmanoilandgas.com

NOMAD and Broker

SP Angel Corporate Finance LLP

Stuart Gledhill / Richard Hail / Adam Cowl

+44 (0) 20 3470 0470

Alma PR

Justine James / Joe Pederzolli

+44 (0) 20 3405 0205

+44 (0) 7525 324431

mosman@almapr.co.uk

Joint Broker

Monecor (London) Ltd trading as ETX Capital Thomas Smith

020 7392 1432

Updates on the Company’s activities are regularly posted on its website:

www.mosmanoilandgas.com

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END

Does EV and battery tech really sound the death knell for Oil and Gas?

Future of Oil and Gas

In an era of rising demand and hype for electric vehicles (EV) and battery technology, commodities and ETFs linked to oil and gas have managed to hold their prices. EV stocks like Tesla and Nio have increased by 71% and 100% respectively in the past year. The price of WTI Crude Oil has also increased by 76%, while prices of micro-cap oil stocks like #ECHO Echo Energy and #MSMN Mosman Oil and Gas have increased by 58% and 13% respectively.

This clearly signifies that even after the rise in demand of EVs, commodities like oil and gas are here to stay in the short and long term.

Consumers are under the impression that they could be in an oil-free world by 2030 and most consumers perceive batteries and electricity as the primary source of energy. However, this is highly unlikely and nothing but a series of myths planted in our brains due to effective marketing.

The International Energy Agency (IEA) that analyses trends in energy industry, released its annual World Energy Outlook in November 2019. It looks at potential energy demand and supply under different scenarios to explore different possible futures. The IEA scenario stated a global increase in energy demand by 24% by 2040 of which, oil and natural gas will supply 64% of the world’s energy needs. In accordance with the Paris Climate Agreement, if based on the Sustainable Development Scenario, the oil and natural gas will still supply 47% of the world’s energy by 2040.

More than 15% of oil demand goes into non-combusted use including petrochemicals which is expected to grow to 20% by 2040. Even if the demand for gasoline and other fuels may hypothetically be on the decline, the petrochemical sector, in contrast, still has room to grow. Some major companies have even pledged some $100bn into the petrochemical industry over the next decade.

Developing countries like India have one of the most aggressive renewable power capacity roll-out programmes worldwide. However, its access to affordable fossil fuels remains a priority for its government because its needs for cheap oil, gas and coal continue to rise to meet energy demand that is forecast to more than double by 2040. India’s petroleum minister Dharmendra Pradhan believes the world’s third-largest oil consumer could be the “golden goose” for crude suppliers as it buys more than 80% of its oil needs from foreign crude purchases.

The graph below demonstrates that the forecasted oil demand for 2040 is higher than present day with non-combusted being the driver to increase the demand. While in the primary energy consumption chart, oil is forecasted to maintain its consumption as a primary source by 2040. Whereas the primary consumption of gas is forecasted to rise.

 

(Financial Review, 2020)

 

Texas Oil Wells

In 2018, companies in the Permian Basin – “an ancient, oil-rich seabed that spans West Texas and South Eastern New Mexico — were producing twice as much oil as they had four years earlier” whilst forecasters expected the production to double again by 2023.

The International Energy Agency (IEA) had also predicted that American oil mostly from the Permian will account for 80% of growth in global supply over the next seven years.

Some small companies already had presence in the Permian Basin before these predictions and report in 2018. In 2017, Mosman Oil & Gas (MSMN) acquired several oil and gas leases comprising the Welch Permian Basin Project for a consideration of $310,000. Although the Welch project contributed to a gross profit of $167,000 in the year ended 30 June 2020, recently Mosman sold this Welch Project for $420,000 receiving a premium of 40% from the sale of the project alone.

Mosman is steadily growing its working interests across a number of projects in Texas, including Stanley, Falcon-1, Winters and Galaxie. These have produced a gross profit of over $500,000 in the 2020 year. Stanley also has a 100% success rate with oil production from four wells drilled to date.

Texas wells are providing high returns to oil companies, and with a growing number of projects and acreage, Mosman is well placed for future growth.

South Argentina Oil Wells

Many companies own wells in Argentina and Latin America as it is considered a region rich in resources with 4% of natural gas reserves and 20% of world oil reserves. They are also often undergoing positive development in macro conditions. A strong demand outlook for energy consumption and economic growth coupled with underdeveloped – but lower cost – onshore plays, makes Latin America a favourable region for companies like Echo Energy (ECHO) to deploy its expertise in support of an exploration-led growth strategy.

For the financial year ended 31 December 2020, Santa Cruz Sur at the south-eastern tip of Argentina helped Echo Energy to increase its revenue fourfold to US $11.1mn. This was also due to Echo securing new gas sales contracts at premium rates to the prevailing spot markets in early Q1 2021.

The increase in revenue drove an significant increase in the Echo Energy (ECHO) stock price by 51% from 55p to 83p between December 2020 and January 2021.

Major and Small Suppliers of Oil and Gas

The difference between the barrels of oil supplied can be huge when major suppliers are compared to the small suppliers. But all that glitters is not gold. High supply and production would require a higher demand to be profitable, if the demand of oil stagnates in the future it will affect the major suppliers before the small suppliers.

The big 10 companies accounted for 28% of global oil production in 2020 as shown below.

When this is compared to small oil producers like Echo Energy and Mosman Oil and Gas,  Echo Energy produced a cumulative of 94,000 barrels of oil in Santa Cruz Sur in South Argentina. While Mosman Oil and Gas produced a gross of 90,000 barrels of oil in the year ended June 2020. Based on available data, the production of Echo and Mosman combined is 0.2% of the global oil demand.

This is effective during times of recession or when the global demand is low as during unprecedented times a major oil supplier to generate profits and work at full capacity would need to sell between 5-12% of oil demand while small suppliers of oil would need to fulfil a negligible percentage of global demand of oil to turn profitable. This is due to high storing and inventory costs for major oil suppliers as well as higher fixed costs due to bigger operations.

Conclusion

Therefore, even though the oil demand is perceived to be lower in the future due to alternative resources, the demand doesn’t seem to be in decline due to oil having uses other than fuel and gas for cars and transportation like non-combusted petrochemicals. Even if the demand for oil is on the decline it would not affect small oil suppliers; as working at full capacity they fulfil just a small percentage of global oil demand and still manage to make hefty profits.

These among many, are the reasons keeping the oil prices buoyant and in the mix, not only for the present day but also for the future.

Mosman Oil and Gas Limited #MSMN – Covid Update

MSMN

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces operations and exploration activities continue with some minor delays due to the Covid-19 pandemic in both Australia and the USA.

In Australia, the geophysical Survey over permit EP-145 has been successfully acquired and processed following minor time delays resulting from Covid related travel restrictions. This data is currently being interpreted and integrated into the regional basin model with the now expected early in October. Once the report is received, the information will be considered and integrated with the geological model. We note that Central Petroleum has been active drilling wells in the nearby permits with positive results on the Stairway sandstone which is one of the target zones in EP-145, as well as the sub-salt helium potential. Covid related restrictions may impact the timing of the Work Area Clearance Survey by the Central Land Council, a requirement for the planned seismic survey.

In the USA, the site for the Winters 2 well is ready and waiting for the drilling rig. The rig operator has advised that the delay is due to restricted crew availability as a result of Covid issues, and the rig is now scheduled to arrive on site on 27 September 2021.

The combinations of pandemic related staffing issues and higher oil prices have also meant a shortage of workover rigs, however a workover is now re-completing a well on the Duff lease and will then move to the Stanley lease.

The delay to workovers, particularly at Stanley, has meant some reduction of short term production rates which, as noted above, should be resolved with a rig now on contract. Production at Falcon has continued to perform strongly with some natural decline from the rates notified on 29 July 2021.

The effect on revenue is currently being mitigated by the strong oil and gas prices, with the WTI oil price over USD 70/barrel and gas currently over USD 5/mmbtu, higher than prices from last quarter when the acquisition of additional interests was being negotiated.

Covid19 restrictions in NSW also mean the Company’s Sydney based accountants and Company Secretary office is currently closed and staff restricted to working from home.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside is now considered to be in the public domain.

Enquiries:

Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director

jwbarr@mosmanoilandgas.com acarroll@mosmanoilandgas.com

NOMAD and Broker

SP Angel Corporate Finance LLP

Stuart Gledhill / Richard Hail / Adam Cowl

+44 (0) 20 3470 0470

Alma PR

Justine James / Joe Pederzolli

+44 (0) 20 3405 0205

+44 (0) 7525 324431

mosman@almapr.co.uk

Joint Broker

Monecor (London) Ltd trading as ETX Capital Thomas Smith

020 7392 1432

Alan Green discusses Panther Metals #PALM & Mosman Oil & Gas #MSMN on the Stockbox Research podcast

Alan Green discusses Panther Metals #PALM & Mosman Oil & Gas #MSMN on the Stockbox Research podcast

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