The company completed drilling at the Crestal-1 well at a depth of 251m and based on the petrophysical analysis the company reported that the oil encountered in both the Eight Mile formation and Cobden Limestone meet the definition of a discovery in accordance with the New Zealand (NZ) legislation.

Mosman executive chairman John Barr said, "This positive result from Crestal-1 is another advance in the exploration and appraisal process and enables the team to tailor its next phase of drilling more effectively."

The company is scheduled to conduct flow test on both the Eight Mile Formation and the Cobden Limestone intervals at Crestal-1 in 2014.

Mosman, with the two successful wells, has achieved its initial exploration objectives as set out in the IPO in March and has a wealth of information on the property to better shape future drilling and appraisal work.

The planned Crestal-2 well will be re-designed as an appraisal well which is scheduled for drilling in September and subsequently more drilling is planned for October and November.

Image: Mosman completes initial phase of drilling at Petroleum Creek project. Photo: courtesy of Rosemary Ratcliff/Freedigitalphotos.net.