13th Jul 2015 09:51
LONDON (Alliance News) - Mosman Oil and Gas Ltd Monday said it still plans on drilling the Murchison permit in New Zealand later this year as long as it can secure additional funding.
The oil and gas company said it is progressing talks about gaining land access agreements for the Murchison permit, and the company has lodged a resource consent submission to the local authority. Mosman also is finalising the well design, and continuing with talks about contracting the rigs needed for the development.
A resource content submission is similar to planning permission in the UK.
Mosman said it is also talking to other nearby operators about potential collaborations that could save costs.
At its other two permits in New Zealand, Petroleum Creek and Taramakau, additional seismic is required to define the next drilling targets, some of which overlap the two licenses, and hence the seismic will be acquired in the two permits at the same time to facilitate a more cost-effective survey.
The Taramakau permit surrounds Petroleum Creek and shares similar geological characteristics, and also shares similar prospective play types.
At the EP 778 license in the Canning Basin in Western Australia, Mosman holds an option to farm-in on the license, but does not currently have to pay any costs until it decides to do so.
"In due course, the joint venture parties will reach a conclusion on drilling a well and Mosman can then decide whether or not to participate," said the company.
At the VICP62 license in the Otway Basin offshore Australia, the company will be conducting further technical work in 2016.
At the STP-EPA-0071 license in the Officer Basin in West Australia, the company is trying to secure land access agreements.
"The company is optimistic this will facilitate the land-access agreement required prior to the award of the permit. In the meantime, there is no material expenditure until the permit is awarded," it said.
"We are very pleased to move towards drilling at Murchison, and to progress the remainder of the exploration portfolio at low cost. We are very committed to the development of Mosman and continue to work on multiple funding options to drill Murchison," said Chairman John Barr.
Mosman shares were down 2.3% to 2.32 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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