Mesa Offshore Trust (fka MOSH)

[GO MOSH]

Here's a post from Mariner Energy's Yahoo board regarding the Nimitz project where mosh owns a 2.5% ORRI covering portions of three blocks, on trend, between our Midway and the famous huge Shell "Alex" late 90's discovery:

"Mariner/Devon Nimitz discovery well 14-Apr-08 02:12 pm Mariner/Devon Nimitz discovery well 12-Apr-08 01:39 pm"

"Does anyone here know the status of this deep shelf discovery well that reached TD a year ago? The rumor a few months ago was that it was a 50mmcfd well with spacing for 10+ additional development wells. I think Norsk Hydro was the operator, but sold all of its shallow water GOM properties to Mariner for around $280 million a few weeks ago."

"Our interest there, underlying 3 blocks, could be huge at present gas prices."

"This is the one 50 miles offshore Galveston where Hydro Gulf of Mexico, USA was the operator (Norsk Hydro American subsidiary). It is one of the several GOM leases sold to Mariner which initially had a 20%WI and DVN also initially had a 20% WI. Hydro initially had a 45% WI and Stephens had the remaining 15%WI. I'm told that Mariner is now the operator, and although the WI's have changed, DVN is still in the deal. GOM Scout sources reported that production casing was run to the 20,500' targeted TVD and the rig was moved pending geological evaluation and testing. The rumor is that the discovery well will produce 50mmcfd, which if true, would produce $500,000 per day X 30 = $15 million per month. That would be huge for the WI percentage owners, and since the reservoir underlies portions of three 9 sq. mi. blocks (Brazos A-24, A-25 and A-39), a new field (referred collectively as the Nimitz project) would likely produce from 10 or more low-risk development wells."

"Total depth of the discovery well drilled on A-24, was reached a year ago in April, 2007, so that well should be tested, completed and producing very soon. The production will reportedly be routed to Shell's platform collection facilities on their nearby A-19, which was set as a result of Shell's Picaroon field and their later huge "Alex" discovery in the late 90's, which tested at 121mmcfd, and was produced at 84mmcfd."

http://swlgs.seg.org/speaker_topics/Pica...

"The Nimitz discovery well targeted the same formation on the Corsair fault, and the Scout rumor-mill says that the well hit 50' of gas bearing sands (in the primary Alex targeted sands), and that the operator spent around $10 million when production casing was run, showing a plan decision to later test and produce that discovery."


If the Scout rumors are accurate, that well will give our Trust around $300,000 monthly to go with the approximate $400,000 now being produced monthly on our 12.5% ORRI on W. Delta 61 off New Orleans. I've said this in at least two other posts, so you can click on my moniker above and re-read the details that I laid out then, as verified with a long time reliable source(s)who gets this information in real time when the monthly required data is "publicly" released to the MMS.

That would give us 12 cents per Unit annually and increase our trading price to over $1 per Unit later this year. AND THAT'S NOT COUNTING WHAT OUR SHARE OF THE DISPUTED MIDWAY WILL CONTRIBUTE.

It also does not count the several MMS-planned additional low risk "development" wells that will be brought on in the near-term. mosh is shaping up to be a monster with its interest in Midway and Nimitz as those two "projects" are developed out. These "deep shelf" wells qualify for "royalty relief" under MMS guidlines, so the government isn't paid the usual 1/6 (16.67 %) federal royalty on the first 15 to 25bcf (depending on the depth of the pay zone).

If you are an optimist, with an imagination, your mind's eye can see 20+ well producing on our Trust's properties, throwing off royalties of 10 cents+ per month, with a concurrent increase in our market trading price. MOSH WILL NEVER BE ANY CHEAPER TO BUY THAN IT IS RIGHT NOW, AND IN MY OPINION, YOU "INVESTORS" CAN TAKE THAT TO THE BANK.