Mosman Oil and Gas Ltd (AIM:MSMN) shares traded higher in London after the explorer told investors it has received an extension for its EP145 Permit from the Northern Territory Government in Australia.
It means that the permit will continue until February 2027, and, notably, it includes a six-month suspension of work obligation conditions to February 2025.
Greenvale Energy, Mosman’s partner in the project, is currently moving forward with an exploration campaign that begins with seismic acquisition followed by drilling.
"We are pleased the EP 145 exploration continues with this time extension required due to the NT elections,” Mosman chief executive Andy Carroll said in a statement.
“We look forward to this exciting project progressing through its seismic and drilling programme, along with our other helium and hydrogen projects in the Amadeus Basin, EP(A)155."
Mosman retains a 25% interest in EP145, where in the past two wells have been drilled encountering hydrocarbons, and, a large extension of the Mereenie structure has been identified, through reprocessed seismic data and published a prospective resource estimate in 2022.
The estimates included total gas at 12 billion cubic feet (Bcf) for the low estimate, 440 Bcf for the best estimate, and 2,290 Bcf for the high estimate.
Also, helium estimates comprised 0.3 Bcf (low), 26.4 Bcf (best), and 229 Bcf (high). Hydrogen estimates are 0.24 Bcf (low), 26.4 Bcf (best), and 275 Bcf (high).
Upon completion of the next phase of the permit, the partners can apply for an additional five-year term.
In London, Mosman shares rose 28% to change hands at 0.069p.