7th Jul 2014 08:09
LONDON (Alliance News) - Mosman Oil & Gas Ltd Monday said its Crestal-1 well at the Petroleum Creek project in New Zealand is continuing to drill beyond 100 metres depth but has already found two regions showing indications of oil.
The New Zealand and Australia-focused oil exploration and development company said the well had reached a depth of 100 metres on July 6 and oil shows had been found in two regions between 55 metres and 70 metres in depth, and between 80 metres and 95 metres in depth.
The company said rock samples from the regions under ultra-violet light showed fluorescence, which indicates hydrocarbons, and it plans to continue drilling down at the site to roughly 250 metres.
Mosman said the fluorescence tests are good ways of seeing if there are indications of oil and will be followed up with additional work, including wireline electric logs and flow tests before any technical and commercial significance can be determined.
The company added that it continues to complete geological and geophysical work on the exploration permit and its recent Cross Roads-1 discovery. It said seismic data in the next few months will be added to its geology models before decisions will be made on which wells to drill in the second phase of drilling later in 2014.
"We continue to make good progress in advancing our understanding of the geology and with the on-going drilling operations, and the team are encouraged by the early positive indications on our second well," Executive Chairman John Barr said in a statement.
Mosman Oil shares were up 3.8% to 41.66 pence during early trading on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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