5th Nov 2014 09:18
LONDON (Alliance News) - Mosman Oil and Gas Ltd Wednesday said it has discovered a fault line and identified a potential new target from a seismic acquisition at its Petroleum Creek project in New Zealand, which will help determine the locations of the company's next exploration wells in the area.
Mosman shares were down 16% to 13.70 pence per share Wednesday morning.
The company is currently exploring its Petroleum Creek project in New Zealand, and has now completed a seismic acquisition despite delays caused by challenging weather, topography and slower seismic drilling than originally forecast.
Despite the delays, Mosman says the data has identified a fault, which is a line in the ground that traces a geological fault, between the Crestal-1 and Crestal-2 wells but has also shown early indications of a new target similar to the nearby Niagara oil discovery, it said in a statement.
"This acquisition, processing and interpretation of the seismic data is essential to continually update the geological model, and then to determine the exact locations of the next exploration wells," said Mosman.
The company has also negotiated a deal to extend its existing contractual agreement for Rig 1, to ensure it is available to drill further wells at the prospect, it said.
Mosman have applied for four permits, including adjacent acreage to the Petroleum Creek project and other areas where the company has identified further prospects outside its existing permit boundaries and hopes the government of New Zealand will make a decision in December, said Mosman.
At the Cross Roads-1 well, a nodding donkey has been installed to conduct a flow test. However work had been delayed to avoid disrupting the seismic work that was being completed in the area. Mosman will now pump the well, with flow tests due to continue for an extended period of time.
At the Crestal-1 well, the company has encountered gas which contains both carbon dioxide and hydrocarbons. The company has measured the pressure at the surface which equalled 110 pounds per square inch and advises that the presence of gas and pressure need to be carefully considered before any further operations are carried out on the well.
In Australia, the company is conducting an appraisal programme for the EP 145 permit, with seismic acquisition and drilling to follow and at the EP 156 permit, the company has identified the presence of potential reservoir targets following a stratigraphic survey and geophysical programme, said Mosman.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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