September 2023 Quarter Production Summary

Mosman Oil and Gas Limited (AIM: MSMN) the hydrocarbon, helium and hydrogen exploration, development, and production company, announces its production update for the three months ended 30 September 2023.

US Production (Various interests)

Mosman achieved net production of 3,564 boe (circa 39 boepd) versus net production of 5,937 boe (c. 65 boepd) in the prior June Quarter. The lower production rates are primarily due to lower production at Cinnabar-1, and Stanley-5 not producing pending installation of a jet pump. A jet pump was installed at Stanley-5 in October 2023 and production optimization continues at Cinnabar.

September Quarter Production Summary

Net Production of 3,564 boe comprised of 2,885 barrels of oil and 3,937 MMBtu of gas. The average sale prices achieved during the period was US$81.47 per barrel for oil and US$2.22 per MMBtu for gas (June quarter was US$73.02 and US$1.70 respectively, and in each case after transport and processing costs but before royalties).

Production numbers in the Quarter are based on the current best available data (including field data if necessary) and are subject to adjustment upon receipt of final sales invoices from the purchasers of products.

Major Project Updates

Cinnabar (75% Working Interest)

The Cinnabar-1 well had water influx that resulted in low production rates despite a workover and an initial attempt to gas lift the well. The last three months all three wells have been producing intermittently and production is mainly from G-1 and G-2 with Cinnabar-1 (G-3) supplying gas pressure support for G-1 gas lift. Technical work continues to determine the preferred artificial lift for Cinnabar-1 (G3) and the older wells G1 and G2.

Stanley (34.85% to 38.5% Working Interest)

Stanley-3 and Stanley-4 have benefited from installation of gas lift. Power generation and sand production caused periodic shutdowns; these issues are now being managed. A jet pump has recently been installed on Stanley-5.

Winters (23% Winters-2 Working Interest)

Winters-2 continues to produce.

Cash position

As at 30 September 2023, Mosman had cash at bank of circa AUD$0.7 million.

Andy Carroll, CEO, said: "Whilst there are significant oil Reserves at Cinnabar, we need to do better with production rates and technical work continues to enable us to achieve this. We have successfully demonstrated the benefits of jet pumps at Stanley and are working to improve overall production for the December Quarter."

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.

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