Mosman disclose Crude Oil Analysis of Crestal-1 and Kotuku seep samples
Mosman Oil and Gas Limited (AIM: MSMN) the Australia and New Zealand focused oil exploration and development company has received its first crude oil analysis on Crestal-1, at its Petroleum Creek Project in New Zealand, which was carried out to assist in the design of the flow tests.
Oil was observed floating on the drilling fluid (“drilling mud”) while drilling the Crestal-1 well. A drilling fluid sample taken from Crestal-1 was analysed by third party laboratories. The laboratory reports state that the oil is crude oil and has similar qualities to a sample taken from the Kotuku oil seeps in the nearby area. The Kotuku seep oil has already been extensively analysed since its discovery over a century ago (described in one report as a 28-31 deg. API medium wax oil, see www.gns.cri.nz/content/download/6138/33719/file. Whilst the quantity of oil in the drilling fluid sample was small, the laboratory results provides further confirmation of “moveable oil” which had been inferred from the electric wireline logs.
The cores taken from Cross Roads-1 and Crestal-1 have been transported to a laboratory ready for testing which will include extraction of oil from the core and testing the extracted oil to assist the ongoing process of measuring reservoir parameters. The results from the ongoing testing process will provide further valuable data for the team and the design of the testing equipment in order to advance the appraisal process to the next stage which is due to commence in September with the drilling and testing of Crestal-2 followed by the flow testing of Cross Roads-1 and Crestal-1.
Competent Person’s Statement
The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman Oil and Gas, who has over 35 years of relevant experience in the oil industry. Mr Carroll is a member of the Society of Petroleum Engineers (SPE).
John W Barr, Executive Chairman of Mosman commented: “We are making good progress at Crestal-1 and are highly encouraged by the latest laboratory testing. This analysis provides further data to support the ongoing appraisal process of the Petroleum Creek asset.”
Mosman Oil and Gas Limited