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Mosman Oil & Gas upgrades oil resources

Last updated: 21:46 18 Dec 2014 AEDT, First published: 22:46 18 Dec 2014 AEDT

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Mosman Oil & Gas (LON:MSMN) has unveiled an upgrade to the prospective resources for the Petroleum Creek project, in New Zealand.

The report by consultant SRK sees the project's mean oil in place rise to 334.2mln barrels from 217.9mln, while it is currently estimated that 27.3mln barrels are in the recovered category.

At the same time the range of estimates spans from 32mln (P90) to 466mln (P10) for oil in place, and 4.7mln to 61.5mln barrels for recoverable resources.

It comes as Mosman looks to expand its footprint in New Zealand and Australia, most recently with a move for ASX listed peer MEO Australia.

Today the company repeated that it believes there is a strong possibility that an agreed rival bid for MEO, by Neon Energy, will not go through and that Mosman's offer is a viable alternative.

Executive chairman John Barr said Mosman is in a strong position to build its asset base as the oil price decline influences capital spending across the sector.

"After a year of hard work, the directors are very pleased with the progress in such a relatively short period since admitting to trading on AIM in March this year, particularly as we progress both organic growth and acquisitions to achieve our strategy of becoming a mid-tier player," Barr said.

"The SRK report confirms an expected upgrade.

"More importantly in our strategy is the work carried out to date, including the exploration drilling programme on the shallower depths and the accumulated seismic and drilling cores.

"As a result, we now have a more detailed appraisal of the geology ahead of the 2015 exploration which will be aiming at the more probable commercial targets in New Zealand."

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on 16/10/23