16th Jun 2015 08:22
LONDON (Alliance News) - Mosman Oil & Gas Ltd saw its shares fall in London Tuesday morning after it said it had determined the preferred drilling location for the first well on its Murchison Permit PEP 57068 in the South Island of New Zealand.
The location of the well, which will be called Te Wiriki-1, has also been approved by the landowner. It is planned as a vertical exploration well with an initial target depth of 1,200 metres, but will be designed to drill deeper if appropriate. The estimated well cost is less than NZD1.5 million, and it has already started talks to secure a drilling rig.
"The objective of the well is to determine the presence of hydrocarbons, stratigraphy, seal and reservoir potential of the formations within the Te Wiriki Anticline. The initial target of the Te Wiriki-1 well is the Brunner Sandstone and Coal Measures which are a proven reservoir and source within the Murchison Basin," the oil and gas explorer said.
However, there are a series of formalities and approvals to be completed before drilling, which is still anticipated in 2015, conditional on a number of matters including funding, the company said.
"The Te Wikiri-1 exploration well is now a priority following completion of a review by our technical team and given, amongst other factors, the existence of an oil and gas discovery at Blackwater-1 as well as oil seeps on the permit. We are excited about the opportunity to finalize planning for the drilling of the oil prospect on the Te Wiriki Anticline, that will also allow us to confirm the significant tight gas and condensate potential identified on the permit," Chairman John Barr said.
Blackwater-1 is a separate oil and gas discovery on New Zealand's South Island.
Mosman Oil and Gas shares were down 7.1% at 3.25 pence in London Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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