REG - Mosman Oil & Gas - Update re. EP 155 Farmin Partner

Mosman Oil and GasAnnouncement

04/07/2024 08:30

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RNS Number : 1479V  Mosman Oil and Gas Limited  04 July 2024

4 July 2024

 

Mosman Oil and Gas Limited

("Mosman" or the "Company")

 

Update re. EP 155 Farmin Partner

 

Mosman Oil and Gas Limited (AIM: MSMN) the helium, hydrogen and hydrocarbon
exploration, development and production company, notes the recent update from
Mining Minerals & Metals plc ("MMM") regarding the proposed acquisition of
Georgina Energy plc ("Georgina"). Georgina's subsidiary company Westmarket Oil
& Gas Pty Ltd is Mosman's farmin partner in Exploration Permit 155
application. The full text of the announcement can be found here:
https://www.londonstockexchange.com/news-article/MMM/proposed-acquisition-of-georgina-energy-plc/16543473
(https://www.londonstockexchange.com/news-article/MMM/proposed-acquisition-of-georgina-energy-plc/16543473)

 

Background on EP(A)155 Mount Winter

 

Located in Australia in the Northern Amadeus Basin between the producing
Surprise Oil Field and Mereenie Oil and Gas Field, EP(A)155 has significant
prospectivity for helium, natural hydrogen and hydrocarbons.

 

EP(A)155 lies within the highly prospective Horn Valley Siltstone fairway with
proven hydrocarbon potential as demonstrated by historical wells, Mt Winter-1
& 1A. Exploration data comprises a sparse 2D seismic grid and 2 wells.

 

Mt Winter-1 was drilled to a depth of 2,650m reaching TD in the Proterozoic
Gillen Fm, above the helium and hydrogen prospective targets. Hydrocarbons
were encountered in 2 intervals, the Ordovician Stairway Sandstone (reservoir
at Surprise Field) and Proterozoic Jonny's Creek Beds (reservoir at Ooaramina
discovery, northeastern Amadeus Basin). The well was drilled off structure due
to the limited seismic data available, and re-interpretation of the available
data suggests valid targets at multiple depths down to and including basement.

 

Details of the Farmout Agreement

 

Mosman's subsidiary company Oilco Limited ("Oilco") is the applicant for the
exploration permit 155. Oilco entered into a Farmout Agreement with Westmarket
Oil & Gas Pty Ltd ("Farminee") on 11 May 2020.

 

Under the terms of the Farmout, the Farminee is responsible for obtaining
Native Title agreement which is required before the permit may be granted. The
Farminee has engaged an experienced consultant and discussions continue with
the Central Land Council ("CLC") advising that a meeting will be arranged.

 

The other farmin conditions include Farminee undertaking technical work,
specifically:

·      Seismic Reprocessing,

·      A Gravity Survey and

·      A Seismic Survey in accordance with the permit work programme.

Once these conditions are satisfied the Farminee will earn a 75% working
interest and Mosman will retain a 25% working interest in the permit. Mosman
may elect to be carried for the cost of drilling a well and the Farminee may
earn an additional 15% working interest if the well is successfully completed
as a producer. In this scenario Mosman would retain a 10% working interest in
the permit.

 

In addition to the forward work programme obligations set out above, Mosman
received A$15,000 from the Farminee in consideration for past costs and will
receive a further A$15,000 following completion of the required seismic
reprocessing work.

 

The Farmout Agreement includes termination rights as follows, both of which
are now in effect given the passage of time:

a.       Mosman may terminate if the farmin work has not been
satisified within 3 years of the Farmout Agreement date

b.       Either party may terminate if the transfer of the Farmin
Interest is not registered within 4 years of the Farmout Agreement date.

 

 

 

 

Enquiries:

 Mosman Oil & Gas Limited                                     NOMAD and Joint Broker

 Andy Carroll                                                 SP Angel Corporate Finance LLP

 CEO                                                          Stuart Gledhill / Richard Hail / Adam Cowl

 acarroll@mosmanoilandgas.com                                 +44 (0) 20 3470 0470
 Alma                                                         Joint Broker

 Justine James / Will Merison                                 CMC Markets UK Plc

 +44 (0) 20 3405 0205                                         Douglas Crippen

 +44 (0) 7525 324431                                          +44 (0) 020 3003 8632

 mosman@almastrategic.com (mailto:mosman@almastrategic.com)

 

Updates on the Company's activities are regularly posted on its
website: www.mosmanoilandgas.com (http://www.mosmanoilandgas.com/)

 

Notes to editors

Mosman (AIM: MSMN) is a helium, hydrogen and hydrocarbon exploration,
development, and production company with projects in the US and Australia.
Mosman's strategic objectives remain consistent: to identify opportunities
which will provide operating cash flow and have development upside, in
conjunction with progressing exploration. The Company has several projects in
the US, in addition to exploration projects in the Amadeus Basin in Central
Australia.

 

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