3rd Jul 2014 10:14
LONDON (Alliance News) - Mosman Oil & Gas Ltd saw its shares rise by a third Thursday after it said the recent oil discovery it made in a well at its Petroleum Creek project met the definition of a discovery under New Zealand law.
On Monday, the company had said it had found oil at the Cross Roads-1 well on the Petroleum Creek Project in New Zealand. On Thursday it said it had now received detailed petrophysical analysis from its third party consultants and determined that the find was an official oil discovery under New Zealand law.
It is now planning flow testing later in 2014 on both the Cobden Limestone interval and the Eight Mile Formation at Cross Roads-1. It will also acquire additional seismic data to assist in mapping the extent of the accumulation and drilling locations for appraisal drilling.
Mosman added that drilling started at the Crestal-1 well on the site on Thursday.
"This further positive result from Cross Roads-1 is extremely encouraging. As we have outlined, this is the first stage of the process as we now move into the appraisal process at Cross Roads-1. The next steps will be to carry out flow tests, additional seismic acquisition and processing work, and then complete the economic modelling required to determine commercial viability. This process is anticipated to take several months." Chairman John Barr said in a statement.
Mosman shares were up 33.3% at 35.5 pence Thursday morning, the biggest gain on the AIM All-Share index.
By Steve McGrath; [email protected]; @SteveMcGrath1
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