22nd May 2015 07:48
LONDON (Alliance News) - Mosman Oil and Gas Ltd shares fell early Friday after it said it is evaluating potential acquisition opportunities and said it is talking to a potential farm-in partner for the Taramakau license, adjacent to the Petroleum Creek project which is currently facing issues.
Mosman shares were down 56.8% to 4.36 pence per share on Friday morning.
The company operating in New Zealand and Australia said it continues to evaluate a number of potential acquisition opportunities, some of which are in a more advanced stage than others, and is discussing financing options to fund any acquisitions it may make.
Mosman's Petroleum Creek project is currently undergoing flow testing, which is expected to be completed "in the next few weeks", and has produced volumes of fluid of up to 28 barrels per day. This is currently limited by pumping equipment and the recovered fluid is predominantly water, it said.
"It is not known why the fluid is predominantly water despite visible oil in the core and on wireline tools at this zone in the Cobden Limestone at the Cross Roads-1 well," it said.
At the Murchison permit, the company is negotiating a deal with a potential drill rig contractor but Mosman said there are a series of formalities and approvals to be completed prior to drilling, which is still anticipated in 2015, conditional on a number of matters including funding.
Potential farm-in discussions continue with an interested party concerning the Taramakau license, which is adjacent to the Petroleum Creek project, but both parties need to complete further technical work before any agreement can be finalised.
By Joshua Warner; [email protected]; @JoshAlliance
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