logo-loader
viewMosman Oil And Gas Ltd

Mosman Oil and Gas to focus on Texas developments

Snapshot

  • Oil and gas explorer with acreage in US and Australia
  • Focusing on Texas developments
oil well

Quick facts: Mosman Oil And Gas Ltd

Price: 0.04 GBX

AIM:MSMN
Market: AIM
Market Cap: £450.99 k
Follow

 

What it owns

Mosman Oil And Gas Limited (LON:MSMN) has a raft of exploration and production interests in shale licences in the US and Australia.

 

US

Arkoma Stacked Pay Project (Oklahoma), Welch Permian Basin (West Texas)

Mosman has decided to exit these projects to focus on developments in East Texas.

Stanley (East Texas)

Under the umbrella of a strategic alliance, Mosman and Baja Oil and Gas are also participating in several projects onshore east Texas. These include the Stanley, Challenger and Champion projects.

Mosman acquired a 16.5% working interest in Stanley by paying 22% of the first two wells, which are now producing at a commercial rate, and reimbursing a small amount of previous expenditure. 

The Stanley-3 well, in which Mosman owns 14.85% interest, has been producing steadily at 170 barrels of oil per day since coming online in September.

New drilling is expected to start in February, with the Stanley-4 well, followed by the Stanley-5 well in the second quarter.

The group’s net production attributable to Mosman amounted to 13,253 barrels oil equivalent for the six months ended 31 December 2019.

Champion (East Texas)

Originally Mosman owned a 60% working interest in Champion, containing the Falcon prospect and the Galaxie prospect, before striking a farm-out deal to bring in new partner Xstate Resources that could take a 25% stake if it fulfils its obligations.

However, Xstate pulled out of the farm-in agreement in the summer as part of a cost-saving strategy, pushing back the planned drill date.

Strawn Oil Project (Texas)

Mosman sold out of the 27-well project in July after deciding that it had provided a "small but important" stepping stone by leading to the acquisition of the more exciting Welch.

 

Australia

Amadeus Basin

One granted permit and one application which covers a total of 5278 sq. km. The Amadeus Basin is considered one of the most prospective onshore areas in the Northern Territory of Australia for both conventional and unconventional oil and gas, and hosts the producing Mereenie, Palm Valley and Surprise fields.

The company has signed preliminary agreements with undisclosed parties for a potential joint venture, and is looking for partners to fund seismic work, followed by a well, planned for next year.

 

How it is doing

In the year to the end of June, the company saw revenue rise to US$1.11mln from US$740,853 the previous year but this only tells half the story as two of its wells (Stanley 1 & 2) only commenced production this year while Stanley-3 has come on stream in the current financial year.

Cash and cash equivalents at the end of the financial year stood at US$823,959, compared to US$1.32mln a year earlier.

Net production attributable to Mosman during the year was 18,216 barrels of oil equivalent, compared to 10,367 in 2018, representing an increase of 76%.

 

What the boss says: John Barr, chairman

“The great success at Stanley has enabled us to clearly define our focus as we build our production and development projects." 

"We are now identifying further opportunities with a more streamlined focus and are implementing a funding plan in order to progress.”

 

Video

 

Inflexion points

  • The company believes becoming cash flow positive is “an increasingly achievable objective”
  • Further wells coming on stream at Stanley
  • Sale of Arkoma and Welch

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Mosman Oil And Gas Ltd named herein, including the promotion by the Company of Mosman Oil And Gas Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Why have proven and probable reserves by gold majors dropped 43% since 2011 ?

  Following on from Proactive analyst Ryan Long's previous video which looked at the decline in proven and probable reserves from some of the majors he now asks why they've plummeted by 43% since 2011. To investigate he crunches the numbers from 10 of the largest global gold producers...

40 minutes ago

3 min read