23rd Jun 2014 09:45
LONDON (Alliance News) - Mosman Oil & Gas Ltd Monday said it has stopped drilling its oil discovery at the Cross Roads-1 well on the Petroleum Creek Project in New Zealand, and is now planning to re-enter and test the lower-lying Cobden limestone region of the well some time in the future after inconclusive results from the possible oil find.
The New Zealand and Australia focused oil exploration and development company said the Eight Mile formation find, which was announced last week, means the exploration phase has been successful and signals the start of the appraisal phase.
However, it said that oil shows which were originally seen in the Cobden limestone region were inconclusive after further tests, and need further tests to be proven, and so it has stopped drilling the Cross Roads-1 well at a depth of 335 metres.
The company said it will carry out meetings next week to review the data obtained from the Cross Roads-1 well and to develop its plan for the development of the site and the necessary steps to show contingent resources.
Mosman added that it is now reviewing its 2014 drill programme at Petroleum Creek, with particular interest in prospects near the Cross Roads-1 site which may be ready to drill in the next few weeks.
It now anticipates drilling up to five or six wells in 2014 and has started planning for seismic targets which may be acquired in the near term.
"Cross Roads-1's success has brought early exploration success and as a result we are making every effort to increase and maximize the exploration efforts in 2014. Focus has now broadened to review and appraisal and resetting priorities for the next few months," Executive Chairman John Barr said in a statement.
Mosman Oil & Gas shares were down 17% to 23.00 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Mosman Oil & Gas