11th Jul 2014 10:47
LONDON (Alliance News) - Mosman Oil & Gas Ltd Friday said the oil regions found in its Crestal-1 well following recent drilling meet the definitions of an oil discovery under New Zealand legislation.
The New Zealand- and Australia-focused oil company said on Tuesday that the Petroleum Creek well had been drilled beyond 100 metres depth and already found multiple regions showing indications of oil.
In the Eight Mile formation two regions were found, between 55 metres and 70 metres in depth and between 80 metres and 95 metres in depth, while a further region was found in the Cobden Limestone region from 158 metres to 173 metres.
On Friday, the company said the well has now been finished at 251 metres in depth and the Eight Mile formation and Cobden formation finds meet the definition of an oil discovery, with flow testing for both sites planned for later in the year.
"This positive result from Crestal-1 is another advance in the exploration and appraisal process and enables the team to tailor its next phase of drilling more effectively," Executive Chairman John Barr said in a statement.
As such, Mosman has achieved its initial exploration targets as set out in its initial public offering during March, allowing it to move forward on development of the drilling and appraisal programme.
The company said its Crestel-2 well will now be drilled in September, with further drilling now scheduled for October or November once additional seismic data has been integrated into its the geological model.
The news comes after the company said last week that oil shows on another well at Petroleum Creek, Cross Roads-1, had also met the definition of a discovery under New Zealand law.
Mosman shares were up 4.2% to 40.90 pence on Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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