15th Oct 2014 08:34
LONDON (Alliance News) - Mosman Oil & Gas Ltd Wednesday said two wells at its Petroleum Creek project in New Zealand are ready to be pumped to determine the volume of oil they could produce.
The company has completed three wells at its Petroleum Creek asset. Two of the wells, Cross Roads-1 and Crestal-1, are now being prepared for an extended period of pumping which is required to determine the sustainable flow rates of the shallow wells.
Mosman's analysis of the third well, Crestal-2, has produced inconclusive results. Drilling data has indicated the presence of hydrocarbons over an 18 metre section, but has suggested there is not a significant quantity of oil. The company has suspended the well until further technical work can advise on the next step to take, it said in a statement.
The company has applied for 4 additional permits in the 2014 block offer in New Zealand. It expects the first results in December and the second results in March 2015, it said.
Further exploration wells in New Zealand will be identified from its acquisition of seismic data. The data is being processed and will determine the exact locations of the next exploration wells, said Mosman.
Mosman also is trying to commence exploration work in Australia as quickly as possible following its acquisition of Trident Energy Ltd. A full review of the Australian permits has been completed, exploration plans have been prioritised and budgets have been prepared, it said.
For its acquisition of Trident, Mosman said it has received acceptances from 98% of Trident shareholders and can now acquire the remaining shares by compulsory acquisition. Trident's offices and operations are currently moving to Mosman's Sydney office.
Mosman shares were down 6.2% to 12.90 pence per share Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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