Business
Arkoma Stacked Pay Project Update
Arkoma Stacked Pay Project Update.
About this update from Quantum Helium Limited
[{"type":"text","content":"\n \nRNS Number : 5205S Mosman Oil and Gas Limited 03 October 2017 \n\n \n3 October 2017\n \nMosman Oil and Gas Limited\n (\"Mosman\" or the \"Company\") \n \n \nArkoma Stacked Pay Project Update\nMosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, is pleased to provide an update in respect to the Arkoma Stacked Pay Project (the \"Project\") in Oklahoma, USA. \nAs per in the Company's announcement of 23 May 2017, Mosman currently owns 10% of the Project and holds two options to increase its interest to 55%:\n1. A first option to acquire a further 20% of the Inland Assets for USD$1 million expiring on 10 October 2017 (the \"First Option\");\n2. Subject to the First Option being exercised, a second option to acquire a further 25% of the Inland Assets for USD$425,000 in March 2018 (the \"Second Option\").\nMosman's strategic alliance partner Blackstone Oil and Gas Limited has an option over 45% of the Project.\nAgreement to Additional Work and Extension of First Option\nMosman and Inland Operating Company have agreed to amend the agreement in order to conduct additional work and to extend the First Option from 10 October 2017 to 15 November 2017. This will allow the recent encouraging results from the Cromwell zone and a test of the Union Valley zone to be included in the Reserve Report prior to a decision in November.\nAt Arkoma, production of oil and gas continues from the Wilcox sands and the Viola Limestone zones. This information, together with mapping of the zones based on the 3D Seismic survey, is sufficient for Reserves to be estimated by the independent expert, Moyes and Co, and this work is ongoing and expected to be completed early in November. \n \nThe flow test on the Woodford zone established hydrocarbons (including oil) and permeability due to natural fractures. The Woodford zone has potential for development as an unconventional shale resourc...