29th Apr 2015 09:17
LONDON (Alliance News) - Mosman Oil and Gas Ltd shares rose on Wednesday after it said an independent report has confirmed that the Murchison permit in the South Island of New Zealand is an "immediate priority" for the company.
Mosman shares were up 17% to 5.12 pence per share on Wednesday morning.
Mosman said the report from SRK Consulting (Australasia) Pty Ltd has shown mean recoverable gas of 1.695 trillion cubic feet of gas and 164 million barrels of recoverable oil.
"It validates our view that the Murchison area should be an immediate priority for Mosman. To this end, we already have a team working on geology, well planning and the approvals required to drill an exploration well which may be a test of both a conventional target and progressing the significant tight gas formation," said Chairman John Barr.
The P90 resource stands at 9.543 trillion cubic feet of recoverable gas and 148 million barrels of recveraable oil, whilst the P10 resource stands at 18.546 trillion cubic feet of gas and 196 million barrels of oil.
"This is a significant step forward and the task is to now further de-risk the resources by methodical exploration and eventually development planning," said Barr.
By Joshua Warner; [email protected]; @JoshAlliance
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