Mosman Oil and Gas Ltd (AIM:MSMN) told investors it has lodged its Environmental Management Plan for the EP 145 project in Australia and, subject to approval, awaits certification required for a seismic exploration programme later in 2024.
Separately, the company noted that the company’s proposed farm-in partner Greenvale has now received a stamp duty assessment and paid the amount due, satisfying one of the conditions of the agreement entered into back in October.
The proposed farm-in transaction can now proceed for Ministerial approval, meanwhile, the company noted that it is not in control of the timing of Ministerial approval ‘but based on progress so far anticipates completion to occur in the near future’.
"I am pleased these two milestones in the exploration and farm-in agreement process have been reached,” Mosman chief executive said in a statement.
“This keeps us on track to acquire seismic in 2024 and then drill in 2025 to test the helium, hydrogen and hydrocarbon potential in this area."
Stockbroker SP Angel described it as a positive update and highlighted the Australian venture as a value creation opportunity.
“Mosman holds a significant acreage position in the Amadeus Basin, which is considered one of the most prospective onshore areas in the Northern Territory of Australia for oil and gas, as well as helium and hydrogen,” the City broker said in a note.
“The Mosman Board did not feel that the value of these assets was fully reflected in the market capitalisation, with the farm-in agreement delivering external funding for the exploration programme and also representing industry validation of the helium, hydrogen and hydrocarbon potential of the EP145 licence.
“The company will receive a cash payment of A$160k on completion, with Greenvale funding the cost of the Year Three seismic work programme by August 2024 and the drilling of one well by August 2025.”
-- Updated to include broker commentary from SP Angel