NZX Announcement: 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
