Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Mosman Oil & Gas; perhaps the market sometimes isn’t as stupid as it appears

By Ben Turney

13 August 2014 08:05

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I had a good old chuckle yesterday when I read Mosman Oil & Gas’ (MSMN) latest promotional ramp... sorry, I mean RNS. Whatever else is said about this company, these guys have been brilliant at devising new ways of hinting at a worthwhile oil discovery without telling any lies or actually claiming what they have found is commercial. The company’s announcements have been true works of art. Sadly for Mosman’s directors it looks like the fun and games are now over. In suggesting that the little dribble of oil found settled on the mud at Crestal-1 could have similar properties to the apparently much-tested Kotuku oil seep, I bet they were surprised to see their company’s share price fall a penny to 21.5p. Something tells me that wasn’t part of the plan...

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Comments

indigo jones

13 August 2014, 21:28

It was declared as an oil discovery because it was an oil discovery. What were they supposed to do? Tell the market they had encountered some strange black tar-like substance?

I genuinely can’t believe my advfn subscription funds this website. It’s like finding out the £2 a month you’ve been giving to cancer research is funding the Taliban.
Tom Winnifrith

13 August 2014, 21:42

Indigo

a) they had more data I think Ben is saying they should have released it. Surely you dont object to that?

b) Your advfn sub funds advfn not us. This website does not receive any financial support from its minority shareholder. It is self financing.

Tom
Ben Turney

13 August 2014, 23:32

@indigo jones – as Tom says there is information relating to their “discovery” they have chosen not to release. Why, is anyone’s guess but I expect we shall all find out in good time.

As I said I hope this one turns out well for shareholders.
indigo jones

14 August 2014, 09:28

First of all, thanks for clearing up the funding issue; that’s a weight off my shoulders.

Secondly, this article makes no mention of the missing info you’ve previously talked about in other articles. Your piece after your andy Carroll interview was quite interesting. I didn’t agree with all the points you made, but you were, as you said, stating facts.

This, on the other hand, is first-rate drivel, and you know it. ‘Little dribble of oil settled on the mud?’ Jesus, I thought you guys were trying to be taken seriously.
Ben Turney

14 August 2014, 09:47

@indigo jones – you need to read the RNS again.

“Oil was observed floating on the drilling fluid (“drilling mud”) while drilling the Crestal-1 well…..Whilst the quantity of oil in the drilling fluid sample was small….”

So “a little dribble of oil settled on the mud” is accurate

As for the other missing information, until they release either the full test results or, prior to that, all the information they provided to NZPAM (which they admitted they have chosen not to do), maintaining a healthy degree of scepticism about this project seems appropriate.

The market dropped in response to that RNS, before I published my piece, so clearly the weight of opinion is behind me on this one.