9th Jun 2014 10:29
LONDON (Alliance News) - Mosman Oil & Gas Ltd Monday said it has found oil shows during drilling at the Cross Roads-1 well on the Petroleum Creek Project in New Zealand, and has therefore stopped drilling and begun coring the well.
The New Zealand- and Australia-focused oil exploration and development company said that on Sunday, the Cross Roads-1 well reached a depth of 172 metres and it decided to stop drilling after oil shows at 146 metres. It found visible oil on the core from 151 metres in depth to its current depth of 172 metres.
The company said the rock samples, and core showing oil at this depth, are interpreted to be from the Eight Mile conglomerate formation and it is now carrying out wireline logs of the site, with full data analysis to be completed soon.
Mosman Oil & Gas said it expects to set the new casing, core the remainder of the Eight Mile formation, drill and core the Miocene sandstone and Cobden Limestone targets, and drill to the basement of the site during this week.
"Whilst it is still early days, we are pleased with the encouraging results so far. Oil shows indicate a technical success, but it is too early to make any comment on the commercial significance," Executive Chairman John Barr said in a statement.
Mosman Oil & Gas shares were up 4.7% to 12.70 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Mosman Oil & Gas