Mosman announce Petroleum Creek Project Weekly Drilling Update
Mosman Oil & Gas (AIM: MSMN), the New Zealand and Australia focussed oil exploration and development company, advises on the latest progress on its drilling programme at the Petroleum Creek Project, New Zealand.
Crestal-1 was drilled to 75m and 7 inch casing run and cemented. Drilling continues and on 6 July had reached a depth of 100m.
Oil shows (fluorescence) from 55m to 70m and 80m to 95m have been encountered. Rock samples under ultra-violet (UV) light show fluorescence indicating hydrocarbons on rock cuttings circulated out of the hole and separated from drilling fluid (mud) by screens. These rock samples are collected as representative of every 2.5m of hole drilled. If there is no oil on the sample then there is no fluorescence shown in UV light. These standard site tests are useful qualitative indications and will be followed up with additional work, including wireline electric logs and flow tests before any technical and commercial significance can be determined.
Planned activity for the coming week is to drill to circa 250m.
Geological and geophysical work continues on both exploration of the permit area and appraisal of the Cross Roads-1 discoveries, as well as planning for flow tests. Seismic data obtained in the next few months will be incorporated in geology models, and decisions will then be made on which wells to drill in the second phase of drilling, expected to commence in later in 2014.
John W Barr, Executive Chairman of Mosman commented:
“We continue to make good progress in advancing our understanding of the geology and with the on-going drilling operations and the team are encouraged by the early positive indications on our second well.”
Source: Mosman Oil and Gas