30th Sep 2014 10:43
LONDON (Alliance News) - Mosman Oil & Gas Ltd Tuesday said it is waiting to receive expert reports before deciding the next steps for its Crestal-2 well at its Petroleum Creek project in New Zealand.
The Crestal-2 well has been drilled 223 metres, with a 4.5 inch casing cemented. The company said there are indications of hydrocarbons present, but stated the analysis is not conclusive. It indicates good porosity in the Cobden Limestone but suggests there is mainly water with some possible oil zones, it said.
The data has been sent to petrophysical experts, and Mosman will make a decision regarding the next steps once the reports are received, it added.
On September 22, Mosman said the rate of drilling at its Crestal-2 well was disappointing, adding it had not penetrated either the Eight Mile or Cobden formations.
Its Crestal-1 well, which is being prepared for flow testing, has perforated the Coben Limestone zones casing and is now complete. Initial pumping has started, and a nodding donkey will be installed to pump the well for an extended well test to determine flow rates, it said.
A nodding donkey, otherwise known as a pumpjack, is the overground drive for a reciprocating piston pump in an oil well.
The results will be reported once a sufficient test period has been completed over the coming weeks, said Mosman.
"The information gained is an essential part of the exploration and appraisal process and good progress is being made in detailed understanding the area. We look forward to further exploration and development aiming for oil production in due course," said Executive Chairman John Barr.
Mosman Oil shares were down 19% to 15.40 pence per share Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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