Mosman says Cross Roads well receives 'discovery' classification

3rd Jul 2014 13:26

Mosman Oil & Gas jumped after analysis of the recently discovered oil shows at Cross Roads-1 showed it meets the definition of a discovery under New Zealand legislation. The group is now planning to flow test later this year and will acquire additional seismic data to assist in mapping the extent of the accumulation and drilling locations for appraisal drilling. Executive Chairman John Barr said: "This further positive result from Cross Roads-1 is extremely encouraging. As we have outlined, this is the first stage of the process as we now move into the appraisal process at Cross Roads-1. "The next steps will be to carry out flow tests, additional seismic acquisition and processing work, and then complete the economic modelling required to determine commercial viability. This process is anticipated to take several months."Shares leapt 32.02% to 35.15p by 13:20. NR