Mosman Oil and Gas Ltd., the New Zealand and Australia focused oil exploration and development company provided Monday an update on its current operations. The short term objective has been to minimize expenditure whilst staying on schedule for drilling at Murchison Permit in New Zealand later this year and maintaining the significant upside value in the portfolio.
Murchison Permit, South Island New Zealand
Land access agreements are progressing well with a resource consent submission now lodged with the local authority, the Tasman District Council. Geology and Engineering work continues and the well design is being finalized as a 3,937 foot (1,200 meter) vertical well. Rig selection and contracting continues, with some discussions on potential cost sharing with other Operators. There are a series of formalities and approvals to be completed before drilling, which is still anticipated in 2015, conditional on a number of matters including funding.
Petroleum Creek Permit, South Island New Zealand
The permit has significant potential, with the focus now on the larger deeper structures. The drilling and flow tests on the Crestal area demonstrated oil generation and migration. The core data provided valuable information on the Cobden Limestone, and confirmed the reservoir properties. Additional seismic is required to define the next drilling targets, some of which overlap in the adjacent Taramakau permit, and hence the seismic will be acquired in the two permits at the same time to facilitate a more cost effective survey.
Taramakau Permit, South Island New Zealand
The Taramakau permit surrounds Petroleum Creek and shares similar geological characteristics, and shares similar prospective play types. The permit is larger and includes additional leads and prospects that are identified on existing seismic and wells, and will be targeted in the next round of seismic acquisition scheduled for later this year or early next year.
The potential Joint Venture at Taramakau has not proceeded as suitable commercial terms could not be agreed between the parties.
EP 145, EP 156 and EPA 155, Northern Territory, Australia
The Northern Territory Government is supporting a gas pipeline connection from the existing NT pipelines to the gas market in Eastern Australia (North East Gas Interconnect (NEGI) see http://dcm.nt.gov.au/territory_economy/north_east_gas_interconnector). This is stimulating acquisitions and gas exploration in the NT (see http://www.centralpetroleum.com.au/IRM/content/default.aspx).
In this context, EP 145 is well placed, adjacent to the Mereenie producing oil and gas field. A small exploration team, contracted by Mosman, is currently active in the permit area, targeting natural fractures and other data to focus the exploration efforts and add to the commercial value of the asset. Results from recent activity in EP 156 have identified significant potential in a formation which has not previously been considered, which has the potential to increase the prospectivity and hence the value of that permit. The third permit area, EPA 155, is adjacent to the Surprise oil field, but is currently in native title moratorium until the end of this year, when land access negotiations will be required prior to award of that permit.
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