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UPDATE - Mosman Oil & Gas shares advance as second New Zealand well yields oil shows

Published: 01:19 08 Jul 2014 AEST

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-- UPDATES SHARE PRICE DETAILS--

Mosman Oil & Gas (LON:MSMN) shares advanced as much as 6% on Monday after it reported oil shows from its second well on the Petroleum Creek Project in New Zealand.

They were found between 55 and 70 metres and 80 to 95 metres at Crestal-1, which has now reached a depth of 100 metres. It is planned to hit its target depth of 250 metres later this week.

The latest update follows the discovery of oil at Cross Roads-1, the company’s first shallow well.

The oil shows at Crestal were identified because of their fluorescence under ultraviolet light.

This standard site test gives “useful qualitative indications”, the company said.

However, it will need to be followed up with additional work, including wireline electric logs and flow tests before any technical and commercial significance can be determined.

Chairman John Barr told investors: “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."

Having risen about 6% earlier today, Mosman shares were set to close the session more than 3% higher at 41p per share.

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