Mosman Prepares for Extended Well Tests at its Petroleum Creek Asset in NZ

Mosman Oil & Gas Limited, the New Zealand and Australia focused oil exploration and development company provided an update Wednesday on recent progress as follows:

Petroleum Creek Activities

Commencement of Extended Well Tests

Mosman has now drilled three wells at Petroleum Creek; Cross Roads-1, Crestal-1 and Crestal-2. The Drill Force rig crew has returned to site after the crew's rest break. Wells have been completed and sites are being prepared for installing nodding donkeys to pump the wells for an extended period which is required to determine the sustainable flow rates of these shallow wells.

At Cross Roads-1, the well was completed Oct. 11 in the Eight Mile formation in preparation for the planned flow tests, and is now ready to be pumped as an extended well test (EWT).

At Crestal-1 initial flow testing commenced from the Cobden Limestone section of the well. As a first step in the initial flow testing program, pumping has been successful in recovering the drilling mud used during the drilling of Crestal-1. The well has now been re-entered to add the Eight Mile formation as part of the flow tests, and following completion of the Drill Force rig operations is also now ready to be pumped as an EWT, pending the final installation of a recently purchased nodding donkey.

Mosman will report the results from both EWT's once meaningful data is obtained and at this stage it is anticipated that the EWT program could result in an extended pumping program.

At Crestal-2 the analysis remains inconclusive; core and drilling data indicate hydrocarbon shows and good porosity over an 18 meter section in the Cobden Limestone but wireline logs do not indicate significant amounts of oil in place. This may be a result of drilling fluid invasion or a prior displacement of hydrocarbons. As a result, the well is suspended until further technical work indicates the appropriate next step.


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