Mosman Oil And Gas Ltd (LON:MSMN)

Mosman Oil And Gas Ltd (LON:MSMN)


Share Price
0.28 p
Change
0.005 (1.82 %)
Market Cap
£2.48 m
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Mosman Oil And Gas Ltd RNS Release

Farm-out of Champion Project


RNS Number : 3376Y
Mosman Oil and Gas Limited
08 May 2019
 

8 May 2019

 

Mosman Oil and Gas Limited

 ("Mosman" or the "Company")

 

Farm-out of Champion Project

 

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, advises that it has today executed a Farm-out agreement for the Champion Project with the ASX listed Xstate Resources Limited ("Xstate") (ASX:XST).

 

Currently Mosman owns a 60% working interest in the Champion Project, containing the Falcon prospect ("Falcon") and the Galaxie prospect ("Galaxie").

 

Under the term of the Farm-out Xstate will earn:

 

1.  A 25% interest in the first lease area drilled by paying USD 50,000 and 33% of the well cost to drill, complete and install production facilities (capped at 33% of USD 600,000, and 25% of any additional cost), and

2.  A 25% interest in the second lease area by paying 33% of the well drilling cost (capped at 33% of USD 450,500, and 25% of any additional cost).

 

Therefore, should Xstate complete its obligations Mosman's working interest will be reduced from 60% to 35%.

 

This Farm-out agreement means Mosman will retain a material interest in these leases, whilst significantly reducing the cost and funding requirements to Mosman of drilling these two wells which are scheduled to be drilled in 2019.

 

Champion

 

Mosman currently has a 60% working interest in the Champion Project, located in East Texas. There is established oil and gas production and infrastructure in the area. Several prospects have been identified using 3D seismic, including Falcon and Galaxie.

 

Baja Oil and Gas LLC has a 40% interest in the Champion Project and remains as Operator.

 

John W Barr, Chairman, said: "The technical advantage of 3D seismic and directional drilling has been demonstrated at Stanley, and we look forward to applying this technology to drilling at Champion, as well as further development wells at Stanley and Challenger projects in due course."

 

 

Competent Person's Statement

The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman, who has over 35 years of relevant experience in the oil industry. Mr. Carroll is a member of the Society of Petroleum Engineers.

 

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside

information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

  

Enquiries:

 

Mosman Oil & Gas Limited

John W Barr, Executive Chairman

Andy Carroll, Technical Director

[email protected]

[email protected]

 

NOMAD and Broker

SP Angel Corporate Finance LLP

Stuart Gledhill / Richard Hail / Soltan Tagiev

+44 (0) 20 3470 0470

 

Gable Communications Limited

Justine James / John Bick

+44 (0) 20 7193 7463

[email protected]

Joint Broker

SVS Securities Plc

Tom Curran / Ben Tadd

+44 (0) 203 700 0078

 

 

Updates on the Company's activities are regularly posted on its website www.mosmanoilandgas.com

 

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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