Energy Club NT - Mosman Oil & Gas agrees farm-in deal for Australian asset

Home
News
Mosman Oil & Gas agrees farm-in deal for Australian asset

Mosman Oil & Gas agrees farm-in deal for Australian asset

17 Oct 2023 12:32 PM | Stephanie Berlin (Administrator)

Mosman Oil and Gas Ltd (AIM:MSMN) has agreed a farm-in deal for its EP 145 project in Australia’s Northern Territory with Greenvale Gold.

Greenvale can earn up to a 75% stake in the project through the payment of A$160,000 cash, paying for A$2 million of seismic as part of a work programme and a well with costs capped at A$5.5 million.

Mosman added it had identified a drilling target at 1,500 metres (m) and estimated the cost of drilling that well to be in the order of A$5 million.

Costs above the A$5.5 million cap will be shared 75% by Greenvale and 25% by Mosman.

Regulatory approvals are expected by 30 January 2024, after which the agreement can be terminated by either party if they have not been received.

Mosman added it considers the farm-in the best outcome as it eliminates the need to raise additional capital.

A spin-out and initial public offering (IPO) as had been previously suggested would have involved significant costs, Mosman added.

Andy Carroll, chief executive: added: "We are pleased to have reached agreement with Greenvale who we see as a strong Joint Venture partner to work with in Australia.

“This agreement delivers on funding exploration and is validation of the helium, hydrogen and hydrocarbon potential of EP 145."

Shares rose 18% on the announcement.

Source: Proactive Investors

Add comment

Energy Club NT is an Incorporated Association

The information contained in this website is for general information purposes only. The information is provided by Energy Club NT Inc and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

Through this website you are able to link to other websites and files which may not be owned, authored or under the control of Energy Club NT Inc. We have no control over the nature, content and availability of other websites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.