Georgina Energy PLC (LSE:GEX) said it will soon pay Mosman Oil and Gas Ltd (AIM:MSMN) a balance of AU$300,000 to complete the acquisition of 100% of the Mount Winter exploration permit.
This follows the payment of an A$50,000 deposit to Mosman to execute the share sale agreement and the signing of the confidentiality agreements necessary to complete the Aboriginal Land Rights Agreement with the Northern Territory Department of Mining and Energy (DME) to secure the granting of permit EPA155.
The concluding payment will be made once the EP155 permit is granted by the DME to Georgina subsidiary Westmarket Oil & Gas.
Georgina said it has engaged consultants to reprocess the Mt Winter seismic dataset and interpret all relevant horizons and basement details, which includes updating volumetric details and remapping the area.
It will then submit a drilling approval application for the Mt Winter 1 re-entry.
"The execution of the share sale agreement to acquire 100% of the revised Mt Winter exploration permit has significant potential benefits to the company," said chief executive Anthony Hamilton.
"This deal further strengthens Georgina's portfolio and increases the potential shareholder value from this asset."
The company also gave an update on developments in Western Australia's Officer Basin, where it is planning to complete the Environmental Impact Study 2 required by the Department of Energy, Mines, Industry Regulation and Safety to obtain drilling approval at the Hussar prospect.
Georgina is targeting the 350 km2 area for helium, hydrogen and natural gas, but heavy rain and flooding continue to create delays in gaining safe access to site.