Mosman Oil and Gas, the oil and gas exploration, development, and production company, announces its production for the year ended 30 June 2022, as well as an update on development in the USA. Highlights include:

Production

• FY22 Net Production of 37,915 boe, a 66% year on year increase.
• Production for the June 2022 quarter was 24,495 boe gross and 8,815 boe net. A 73% increase in Net Production compared to the June 2021 quarter.
• Workovers at Stanley Project ongoing.
• Workovers completed after 30 June 2022 have already increased daily production from the June quarter, with the Stanley-4 well that was producing gas now producing oil (rates yet to stabilise, have been as high as 64 bopd gross).

Development (Cinnabar Well 75% Working Interest)

• New Joint Venture partner secured reducing Mosman's share of costs.
• Drilling contract signed and well casing secured.
• Pre-drill requirements underway with work scheduled to be completed by end of August.
• Spud date is now scheduled to be late August.
• Potential oil and gas sales contracts are under negotiation.
• Production estimates remain at 120 boepd gross.
• Pre-drill costs of circa USD 0.2 million approved and cash call paid.
• Drill costs remain estimated at circa USD 1 million. Circa 70% of the costs are now locked in with the signing of the fixed price drilling contract.
• Completion costs remain estimated at USD 0.6 million.

John W Barr, Chairman, said:
"Mosman is pleased to report a significant uplift in annual net production, delivering on the strategic plan to increase production.

Whilst commodity prices are strong, workforce staff shortages due to Covid19 are affecting all operations and there is limited availability of drilling and workover rigs.

The Cinnabar well is planned and funded and is currently scheduled to spud in late August.

"The Company continues to maintain its portfolio of development and exploration projects, with a clear focus on its strategic plan to maximise the opportunity for further production growth and increasing cashflow. In addition to its USA projects, Mosman has two exploration areas in Australia which are well positioned to take advantage of the increasing demand for Helium and Hydrogen, in addition to oil and gas."

USA Production

Net Production attributable to Mosman for the year ended 30 June 2022 was 37,915 boe, an increase of 15,091 boe, or 66% from the year ended 30 June 2021 of 22,842 boe.

The Net Production of 37,915 boe produced in the financial year consisted of 10,827 barrels of oil and 157,109 MMBtu of gas. The average sale prices achieved during the June 2022 quarter was US$109.24 per barrel for oil and US$5.81 per MMBtu for gas. (March quarter was US$89.53 and US$4.13) (in each case after transport and processing costs but before royalties).

For the June quarter net production was 8,815 boe and consisted of 2,846 barrels of oil and 34,624 MMBtu of gas.

KeyFacts Energy Industry Directory: Mosman Oil & Gas