Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces a significant reserve update in respect of its producing Cinnabar Project in Tyler County, Texas.
Reserve Report
After the successful development drilling of and production from the Cinnabar-1 well, Mosman commissioned an updated independent Reserve Report for the Cinnabar Project (the “Report”).
The Report was prepared on the basis of a potential full-field development of the Cinnabar Project where Mosman has a 75% Working Interest. A wholly-owned subsidiary Mosman Operating LLC operates the Project.
Total Proved Reserves have increased by approximately 78% from 887,000 to 1,581,000 gross boe.
Gross Reserves (MBOE):
|
Proved Developed Producing |
Proved Developed Behind Pipe |
Proved Undeveloped |
Total Proved |
Total Probable |
Total Proved Plus Probable |
|
302 |
147 |
1,132 |
1,581 |
65 |
1,646 |
A further breakdown of the Reserves is set out below:
|
|
Gross |
Net attributable Mosman 75% Working Interest less royalties |
||||
|
|
Proved |
Proved & Probable |
Proved, Probable & Possible |
Proved |
Proved & Probable |
Proved, Probable & Possible |
|
Oil & Liquids reserves per asset, in thousands of barrels.
From production to planned for development
|
1,184 |
1,230 |
1,230 |
648 |
673 |
673 |
|
Total for Oil & Liquids |
1,184 |
1,230 |
1,230 |
648 |
673 |
673 |
|
Gas reserves per asset, MMCF From production to planned for development
|
2,299 |
2,413 |
2,413 |
1,258 |
1,320 |
1,320 |
|
Total for Gas |
2,299 |
2,413 |
2,413 |
1,258 |
1,320 |
1,320 |
This Report was prepared by D Braxton and Associates in March 2023 and conforms to SPE-PRMS guidelines.
“Gross” are 100% of the reserves and/or resources attributable to the licence whilst “Net attributable” are those attributable to Mosman’s Working Interest after royalties.
Theoretical Development Schedule
Reserves are based on a potential full-field development on the producing 352 acre Cinnabar Project involving 5 further development wells with one well drilled in 2023, two in 2024 and two more in 2025. It also assumes well recompletions when appropriate to produce separate production zones. The final development plan remains subject to a number of matters including Board approval and funding availability.
Working Interest (WI)
Mosman acquired 97% WI and farmed out to reduce Mosman’s exposure to the Cinnabar-1 well drilling costs. This farmout became effective with the drilling of the well in November 2022 and reduced Mosman’s WI to 75%.
John W Barr, Chairman, said: “We are extremely pleased with the new Reserve Report that confirms significant quantities of Reserves at Cinnabar.
“Cinnabar is now the most significant project in Mosman’s portfolio both in terms of production and reserves. “
“The Board can now consider the best way to commercialise these Reserves.”
Qualified Person’s Statement
The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman, who has over 35 years of relevant experience in the oil industry. Mr. Carroll is a member of the Society of Petroleum Engineers.
Enquiries:
|
Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director |
