Mosman weekly update 16th June 2014
/To read this NZX announcement - click here
Mosman reports oil discovery at Kotuku prospect
/14 June 2014
NZX Announcement
Mosman reports oil discovery at Kotuku prospect
Aorere Resources Limited holds approximately 15.8% of AIM listed Mosman Oil and Gas Limited.
Mosman released the following announcement in London yesterday. Following the announcement the Mosman share price moved from ~11 pence to a peak of 42.9 pence before closing at 37. Trading volumes were very high relative to the free trading (i.e. not locked up by AIM rules) stock available to be traded.
Our Mosman shareholding now has a present market value of NZD 7.4 million, based on today’s closing price. As a result the undiluted net asset backing of an Aorere share (including all significant portfolio assets at market value) is now 2.22 cents, compared with 1.37 cents as at 31 May. The most recent market price for AOR is 0.8 cents.
Regards,
Chris Castle, Managing Director
Aorere Resources Ltd
13 June 2014
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Cross Roads-1 Oil Discovery
Mosman Oil & Gas (AIM: MSMN), the New Zealand and Australia focused oil exploration and development company, is pleased to announce an Oil Discovery (as defined below) at its Petroleum Creek Project in New Zealand.
Drilling commenced at Cross Roads-1 last week and the Company has been advised by its technical and legal advisors that in accordance with the New Zealand legislation the data from work completed to date meets the definition of a Discovery and the regulations require this to be reported to New Zealand Petroleum & Minerals ("NZPAM").
The core and wireline logs indicate two zones each 8.5 metres thick in the Eight Mile formation have good porosity (10 to 20%) and significant moveable oil for a total potential pay of 17 metres.
In addition, the well has now been drilled to 243 metres where the Cobden limestone was encountered. The cuttings sample from this depth had oil shows (cut and fluorescence). 7 inch casing has now been set and cemented. Once blow out preventers ("BOPs") are installed and pressure tested, coring will commence to test the Cobden limestone.
Drilling will then continue until total depth estimated to be circa 350-400metres.
Mosman has started detailed planning for the testing and appraisal programme once drilling at Cross Roads-1 has been completed.
The weekly drilling update is anticipated to be released on Monday 16 June 2014 following the ongoing drilling.
John W Barr, Executive Chairman of Mosman commented: "We are delighted to get an Oil Discovery in the first half of the first well, so soon after drilling commenced at Cross-Roads 1. We are now encouraged by the oil shows in the Cobden limestone and look forward to seeing the results from drilling the rest of this well. The results to date appear to be a "proof of concept" for the 22 prospects and leads identified by geophysics at Petroleum Creek in addition to the Crestal area."
Competent Person's Statement
The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman Oil and Gas, who has over 35 years of relevant experience in the oil industry. Mr Carroll is a member of the Society of Petroleum Engineers (SPE). The petrophysical analysis of wireline logs that established moveable hydrocarbons logs was completed by Kiwi Well Evaluation Limited and SRK.
Definition of Oil Discovery in NZ
In accordance with the New Zealand legislation a petroleum discovery is considered to be established when there are significant moveable hydrocarbons in the drilling column as a result of exploration and/or appraisal well drilling operations, or well stimulation operations. Moveable hydrocarbons can be related to a sub-surface deposit which can be established through testing, sampling, and/or logging.
Significant moveable hydrocarbons are considered to exist if there is evidence of a sufficient quantity of petroleum to justify further appraisal activities.
Enquiries
Mosman Oil & Gas Limited
John W Barr, Executive Chairman
Andy Carroll, Technical Director
SI Capital Limited
Nick Emerson/Andy Thacker
+44 (0) 1483 413500
Mosman announces oil discovery
/To read the NZX announcement - click here
Cross Roads -1 Drilling Update
/Dear Aorere Resources Limited shareholder.
This announcement has just been filed with NZX and will be released before the market opens this morning.
Regards.
Chris Castle
Managing Director
Aorere Resources Limited
Cell: +64 21 558 185
Cross Roads-1 Drilling Update
Mosman Oil & Gas (AIM: MSMN), the New Zealand and Australia focused oil exploration and development company, is pleased to advise drilling progress at its Petroleum Creek Project as follows.
At midnight (NZ time) on Sunday 8 June, Cross Roads-1 has reached a depth of 172m. Due to oil shows (fluorescence) at 146m, drilling was stopped and coring commenced. Oil shows (fluorescence and cut) and visible oil on core from 151m continue to the current depth of 172m.
The rock samples and core are interpreted to be from the Eight Mile conglomerate formation, as expected at this depth. Coring is providing valuable rock and fluid information, and will continue. Due to the oil shows, additional wireline logs will now be run in this 8.5 inch hole section and the Company will update shareholders accordingly once full data analysis has been completed.
Anticipated operations for this week commencing 9 June include setting the 7 inch casing, coring the remainder of the Eight Mile formation, drilling and coring the Miocene sandstone and Cobden Limestone targets and drilling to basement.
Following drilling operations on Cross Roads-1, the Drill Force rig is scheduled to be moved to the nearby Crestal-1 site to drill that well. The Crestal-1 site is "ready to drill", and the Crestal-2 site preparations are progressing well. The Mosman Board is conducting a site visit, HSE audit, and meeting stakeholders in the area including the West Coast Regional Council, landowners and service providers. The community feedback on our operations is positive.
John W Barr, Executive Chairman of Mosman commented: "Whilst it is still early days, we are pleased with the encouraging results so far. Oil shows indicate a technical success, but it is too early to make any comment on the commercial significance. The operations are going well and the geology is as expected. We look forward to additional results including ongoing cores and wireline logs and will provide further advice as and when appropriate."
Competent Person's Statement
The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman Oil and Gas, who has over 35 years of relevant experience in the oil industry. Mr. Carroll is a member of the Society of Petroleum Engineers (SPE).
Enquiries
Mosman Oil & Gas Limited
John W Barr, Executive Chairman
Andy Carroll, Technical Director
SI Capital Limited
Nick Emerson/Andy Thacker
+44 (0) 1483 413500
Mosman spuds first well at Kotuku prospect
/Dear Aorere Resources shareholder,
The following announcement was filed with NZX a few minutes ago and will be released before the market opens on Monday.
Regards,
Chris Castle
Managing Director
Aorere Resources Limited
Cell: +64 21 558 185
7 June 2014
NZX Announcement
Mosman spuds first well at Kotuku prospect
Aorere Resources Limited holds approximately 15.8% of AIM listed Mosman Oil and Gas Limited. This shareholding has a present market value of NZD 2.4 million and represents 34% (at market value) of the Aorere portfolio. Mosman released the following announcement in London last night.
Regards,
Chris Castle, Managing Director
Aorere Resources Ltd
6 June 2014
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Petroleum Creek Drilling Commences
Mosman Oil & Gas (AIM: MSMN), the New Zealand and Australia focused oil exploration and development company, announces that drilling has started (spudded) today, on the first of its three planned wells in the 2014 drilling programme, at its Petroleum Creek Project in New Zealand.
On the first well, Cross Roads-1, Mosman plans to test Eight Mile and Cobden Limestone formations known to contain oil in offset wells. The well is being drilled vertically from a newly constructed well pad to an expected total depth of 400 m.
Mosman plans to release weekly drilling updates over the coming weeks.
John W Barr, Executive Chairman of Mosman commented: "We are pleased to commence drilling at Petroleum Creek so soon after the March 2014 IPO. The Board will meet onsite next week to review progress and also to meet with local contractors and stakeholders who have greatly assisted Mosman achieving this first milestone."
Mosman Awards Drilling Contract
/29 April 2014
NZX Announcement
Mosman awards drilling contract
Aorere Resources Limited holds approximately 16.7% of AIM listed Mosman Oil and Gas Limited.
This shareholding has a present market value of NZD 2 million and represents 24.5% in value of the Aorere portfolio. Mosman released the following announcement in London last night.
Regards,
Chris Castle
Managing Director
Aorere Resources Ltd
Drilling Contract Awarded at Petroleum Creek, NZ
Mosman Oil and Gas Limited (AIM: MSMN), the New Zealand and Australia focussed oil exploration and development company, is pleased to provide a further operations update on its onshore Petroleum Creek Project in the South Island of New Zealand.
Drilling Contract Awarded
Petroleum Creek Limited (“PCL”), Mosman’s wholly owned subsidiary, has awarded the drilling contract for the June 2014 drilling programme to Drill Force New Zealand Ltd (“Drill Force”), a specialist drilling services company.
The programme, which comprises two wells plus two contingent wells, includes the planned Crestal-1 and Crossroads-1 wells as previously announced.
Drill Force management have a combined 100 year+ drilling industry experience, along with a drilling heritage of five generations and the equipment is ideal for Mosman’s drilling objectives.
John W Barr, Executive Chairman of Mosman commented: “We have a strong relationship with Drillforce, and their experience is ideal for the planned wells. The imminent drilling programme is a significant milestone for Mosman and we are looking forward to our first discovery in the region.”
Kotuku Permit - Mosman Oil and Gas Limited Update
/24 January 2014
NZX Announcement
Kotuku Permit - Mosman Oil and Gas Limited Update
Following the successful sale of petroleum exploration permit 38526 over the Kotuku oil seeps on the West Coast (Permit) to Mosman Oil and Gas Limited (Mosman) prior to Christmas, we are pleased to provide an update on the Permit and Mosman.
Aorere’s Investment
Following the sale transaction, Aorere Resources has a 18% shareholding in Mosman and also holds a royalty for 2% of net sales revenue deriving from the Permit.
Mosman AIM Listing
Work on Mosman’s AIM listing is well advanced and it is expected that its listing will be completed in approximately 3 weeks’ time. In addition to the Permit Mosman also holds a 25% interest in an oil and gas permit application in Australia.
Competent Persons Report on the Permit
In connection with the AIM listing Mosman commissioned a competent persons report from Moyes and Co in respect of the Permit. A copy of the competent persons report accompanies this announcement.
Two key findings of the report are:
• The Permit has hydrocarbon potential in deeper structural and stratigraphic plays to the west and north of the Kotuku seeps where the hydrocarbon kitchens are mapped.
• The Permit has the necessary ingredients to suggest that accumulations of oil could be present, particularly at deeper levels. The project area is dominated by the Kotuku anticline and 22 leads and prospects have been mapped over the feature. The shallow nature of many of the structures mapped is favourable for cost effective drilling.
Page 28 of the report also sets out the “Prospective Resources” at the Permit. These suggest in terms of unrisked recoverable oil within four reservoirs at the Permit that there is a:
• 90% probability of 4.8 MSTB (million stock tank barrels)
• 50% probability of 15.6 MSTB.
• 10% probability of 59.2 MSTB.
Please note the above are estimates only and should be considered in the full context of the Competent Persons Report. In particular the above must be considered in the context of the definition of “Prospective Resources” in the report, being:
"Prospective resources are estimated volumes associated with undiscovered accumulations. These represent quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from oil and gas deposits identified on the basis of indirect evidence but which have not yet been drilled. This class represents a higher risk than contingent resources since the risk of discovery is also added. For prospective resources to become classified as contingent resources, hydrocarbons must be discovered, the accumulations must be further evaluated and an estimate of quantities that would be recoverable under appropriate development projects prepared."
Outlook
The Board of Aorere is excited by the potential for the Permit and its investment in Mosman and will watch further developments arising from its 2014 work programme on the Permit with interest.
For and on behalf of the Board
Dene Biddlecombe
Chairman
Aorere Resources Limited
Completion of Sale of Kotuku Permit to Mosman Oil and Gas
/20 Dec 2013
Further to the announcement of 18 December, Aorere Resources is pleased to advise that the second stage of its sale of Petroleum Exploration Permit 38526 has been satisfied.
On Wednesday this week the sale of the Permit to Petroleum Creek Limited (a wholly owned subsidiary of Mosman Oil and Gas Limited) was completed. Aorere Resources was issued a 40% shareholding in Petroleum Creek that was subject to a call option in favour of Mosman. Mosman exercised the call option immediately and has today acquired from Aorere Resources the 40% Petroleum Creek shareholding.
The consideration provided to Aorere Resources for the Petroleum Creek shareholding is:
• The issue of NZ$900,000 of shares in Mosman at an issue price of A$0.10 per share; and
• The grant of a 2% royalty of net sales revenue deriving from the permit.
Mosman is an unlisted Perth based company that plans to list on the London AIM stock exchange early in 2014. Mosman is currently acquiring exploration areas in New Zealand and Australia.
Aorere Resources Chairman Mr. Dene Biddlecombe said “we are very pleased to become a direct shareholder in Mosman. This gives Aorere Resources indirect exposure to a number of interesting oil and gas prospects through the Mosman shareholding. We believe there is real potential for the Kotuku permit and look forward to its further development with the benefit of Mosman’s knowledge and sector expertise”.
The Chairman of Mosman, Mr. John W Barr said "we welcome Aorere to being a shareholder in Mosman and are excited about the drilling to occur at Kotuku in 2014.”
For and on behalf of the Board
Dene Biddlecombe
Chairman
Aorere Resources Limited
Sale of Kotuku Permit to Mosman Oil and Gas Limited
/18 December 2013
NZX Announcement
Sale of Kotuku Permit to Mosman Oil and Gas Limited
Further to the announcement of 9 July, Aorere Resources is pleased to advise that the condition to the sale of Petroleum Exploration Permit 38526 has been satisfied. The condition related to New Zealand Petroleum and Minerals approving the proposed transfer.
As a result Aorere Resources has today completed the sale of the permit to Petroleum Creek Limited, a wholly owned subsidiary of Mosman Oil and Gas Limited. Aorere Resources has, in return, been issued a 40% shareholding in Petroleum Creek.
Aorere Resources has also granted a call option over the Petroleum Creek shares to Mosman. Under the call option Mosman can issue a call notice to acquire the Petroleum Creek shares from Aorere Resources. The consideration to be provided to Aorere Resources under the call option is:
• The issue of $900,000 of shares in Mosman at an issue price of A$0.10 per share; and
• The grant of a 2% royalty of net sales revenue deriving from the permit.
Mosman has today also given a call notice and exercised the call option. Completion of the call option is expected this Friday. A further market announcement will be made at this time.
Aorere Resources Chairman Mr. Dene Biddlecombe said “we are very pleased to complete this first stage of our partnership with Mosman through Petroleum Creek. We see substantial potential benefits to the West Coast of the South Island as we believe that this deal ensures significant investment in the petroleum sector there in the future”.
Mosman is an unlisted Perth based company that plans to list on the London AIM stock exchange early in 2014. Mosman is acquiring exploration areas in NZ, Australia and Papua New Guinea.
The Chairman of Mosman, Mr. John Barr said "we are very pleased to achieve this important milestone in our NZ business. Mosman plans to drill several wells in this very prospective area in 2014. Our objective is to be the first commercial oil producer in the South Island. We hope this will bring investment and jobs to the West Coast area, and we appreciate the positive reception by all stakeholders"
For and on behalf of the Board
Dene Biddlecombe
Chairman
Aorere Resources Limited
Grant of Mining Permit for Chatham
/We are pleased to advise the market that Chatham Rock Phosphate has today been granted a mining permit in respect of its project to mine rock phosphate on the Chatham Rise.
A copy of the following documents are attached:
- Chatham Rock Phosphate's market announcement.
- The media release of New Zealand Petroleum and Minerals.
- A question and answer sheet regarding the permit, also issued by New Zealand Petroleum and Minerals
This is significant news for Aorere Resources as its investment in Chatham Rock Phosphate represents 69% of its total assets.
Chris Castle
Managing Director
Aorere Resources Limited
To read the associated announcements - click here - to be redirected to the NZX website.
Interim Report to 30 September 2013
/Dear Aorere Resources shareholder,
This announcement was released to NZX earlier today.
Regards,
Chris Castle
Director
Aorere Resources Limited
+64 (21) 558 185
chris@widespread.co.nz
www.aorereresources.co.nz
Interim Report to 30 September 2013
Directory
Directors: Dene Biddlecombe (Chair), Chris Castle, Jill Hatchwell, Linda Sanders, Denis Kelly
Contacts: +64 (3) 525 9170 or +64 (21) 558 185 or chris@aorereresources.co.nz
Website: www.aorereresources.co.nz
Headquarters: Level 1, 93 The Terrace, Wellington, NZ
Postal: PO Box 231, Takaka 7142, NZ
Registered office: 1232 State Highway 60, Onekaka, Golden Bay 7172, NZ
Share registry: Link Market Services, 138 Tancred St, Ashburton
Auditors: BDO, Tower Building, 50 Customhouse Quay, Wellington
Legal Advisers: Duncan Cotterill, Tower Building 50 Customhouse Quay, Wellington
Bankers: ANZ Banking Group (New Zealand) Ltd, 215-229 Lambton Quay, Wellington
Financial Result
Your directors submit the unaudited financial statements of Aorere Resources Limited for the six months to 30 September 2013. The trading result for the period was a loss of $229,000 (2012 loss $484,000).
Operations Report
2013 is proving a transformational year with some long term investments progressing well and some prospective investments offering significant promise.
Chatham Rock Phosphate
Mining Licence - Chatham is our most significant investment and continues to make strong progress towards its goal of extracting rock phosphate nodules from the seabed in 400 metre waters on New Zealand’s Chatham Rise in the Exclusive Economic Zone.
Our focus over the period under review has been attaining a Mining Licence from the Government agency New Zealand Petroleum and Minerals. We had initially expected approval shortly after the passing of the new Crown Minerals Act in late May. However, the process has proved longer and more complex than we anticipated so the Chatham Board decided to focus on achieving that licence before submitting its Marine Consent application.
The team has worked to satisfy the requirements of the new regime. As the first of this type under the new Crown Minerals Act, NZP&M has undertaken a robust assessment process, but it has taken considerably longer than we expected. Chatham is continuing to make good headway in gaining the Mining Licence and at the time of writing is confident it is close to getting over the line, with the final few outstanding issues close to being resolved.
Marine Consent - The additional time and cost involved in the Mining Licence process has meant the Marine Consent time line has been pushed into 2014, with plans to submit the formal application in the first quarter of the new year. The centrepiece of this application is a comprehensive Environmental Impact Assessment, comprising well over 1200 pages and including more than 30 reports produced by a variety of experts.
Chatham produced a near-final version in early July before deciding to hold off formally submitting it. Since then, the team has worked to further improve it – especially building in feedback from peer-reviews and ongoing consultation. The consultation has been very valuable as it has raised questions the team has been able to address and has helped hone the messages central to the proposals.
Capital raising, Consultation and Conferences - Capital raising has continued with an Initial Public Offering in the New Zealand market in June which raised around $1.5 million and gained another 125 local shareholders. Chatham has also raised further capital among international investors, primarily private equity funds and high net worth individuals.
In total, the company has raised $24.5 million over the past three years, with many original Chatham and Aorere investors continuing to support the various capital raisings. The boards of both companies are grateful for your continued support.
The Edison Group provided an update of operations in September, which assessed Chatham’s value above $2, based on an analysis of the business plan.
Chatham has continued to engage with stakeholders, including meetings with Labour MPs, another visit to the Chatham Islands and environmental groups. The team presented at conferences both internationally – including its third Underwater Mining Institute forum – and in New Zealand, where the team spoke to the Australasian Institute of Mining and Metallurgy, the Institute of Chartered Accountants and a Mining Summit targeting international investors.
The focus ahead
Once Chatham receives the Mining Licence, directors will be talking to a range of investors to raise the capital needed to fund the Environmental Consent process. Based on the current business plan, Chatham anticipates receiving its Marine Consent in the third quarter of 2014. During that period, Chatham will continue to work with its technical partner Royal Boskalis on ship design prior to starting the two-year ship conversion process with a target date for starting operations of the second half of 2016.
Asian Mineral Resources
Asian Mineral Resources Limited’s Ban Phuc nickel mine in northern Vietnam was formally opened at the end of June. Operations at the underground mine re-commenced on 10 May and, with the commissioning of the processing plant, production ramped up over the ensuing months to a target run-rate of more than 6,600 tpa nickel, 3,300 tpa copper, and 200 tpa cobalt contained in concentrate.
After a 13-year involvement in this project, it is satisfying to see the company finally become a producer.
While events – the 2008 global financial crisis and the imposition of an onerous tariff - conspired against us achieving the returns we had initially hoped for and caused significant dilution of our investment, it remains a significant milestone. It was pleasing to note the mine was constructed with zero lost time injuries – a world-class achievement.
AMR continues to focus on progressing opportunities to expand production, including extensions to the Ban Phuc massive sulphide vein, and selected higher-grade portions of the disseminated sulphide deposit. This will enable AMR to leverage the 30% additional installed capacity at its processing plant. Work is also progressing on developing a smelter that should reduce the export tariff and significantly improve returns.
Oil and Gas – Kotuku
In September, Aorere and Perth-based Mosman Oil and Gas announced plans to drill two onshore wells this summer at the Kotuku prospect on the West Coast. This follows approval from New Zealand Petroleum and Minerals to change conditions relating to Petroleum Exploration Permit 38526 over the Kotuku oil seeps near Greymouth.
The two-well programme is intended to provide sufficient data to establish an oil discovery and feasibility of commercial development. Mosman has indicated additional areas of the West Coast of interest for future investment. The new programme brings drilling ahead of the seismic testing with the plan to drill two exploration wells within the next 12 months, after which the permit holders will acquire seismic followed by another, perhaps deeper, exploration well.
In April, Aorere agreed to sell its interest in the permit to Mosman subsidiary Petroleum Creek. Aorere gained a 40% shareholding in Petroleum Creek and Mosman committed to fund the current work programme for the permit.
Mosman can exercise a call option to acquire Aorere’s Petroleum Creek shares by paying $900,000 in cash or in Mosman shares. In either case, Aorere has a 2% royalty over all petroleum obtained from the permit. Mosman brings extensive international experience in the oil and gas exploration sector and is backed by European, Australian and Asian investors.
Akura
Akura is a private company incorporated in Fiji with 38 shareholders, and 1.5 million shares on issue. Aorere holds 8% of Akura which has a strategic tenement holding in Fiji, with ~6,000 km2 as granted oil exploration licences and ~8,000 km2 as applications.
Research and exploration by Akura has shown Fiji to have a high potential for the discovery of oil in onshore anticline traps associated with natural gas seepage, some of which is dominated by butane. The main anticline target in the Nadi area has a projected length of 24 km, of which 12 km is coincident with natural gas
seepage and such structures are capable of producing in excess of 100 million barrels of oil.
Akura has entered into an agreement with Tavuni Capital, a Sydney-based capital services group, in relation to capital raising of F$1 to 3 million to acquire the onshore seismic data, select drill sites and complete feasibility studies for drilling.
King Solomon Mines
KSO is focused on the sale of Sonid North, its principal project in Inner Mongolia. The continuing difficult state of the commodities market has made it difficult to achieve an early sale.
KSO directors continue to review a number of minerals opportunities as potential acquisitions and they believe that the company will be successful in moving its focus to a new minerals opportunity.
A rigorous cost reduction approach is being applied by the company to minimise expenditure.
Outlook
We are currently assessing a some exciting new opportunities. It is too early to discuss these in any detail but your board considers them to offer significant potential.
Our focus of identifying and developing New Zealand based minerals and oil prospects is presenting some interesting possibilities.
Change in Auditor
We can also advise that Crowe Horwath has resigned from the office of auditor of the company. We thank Crowe Horwath for their assistance over their time as auditor. The Board has appointed BDO as the new auditor of the company.
On behalf of the Board
Dene Biddlecombe Chris Castle
Chairman Managing Director
27 November 2013
