Mosman Oil and Gas Ltd (AIM:MSMN) has taken an important, albeit expected, step forward as it has now received a key approval from the Ute Mountain Ute Tribal Council for its Sagebrush and Coyote Wash projects in Colorado.
The approval covers a US$150,000 bond, which was required before Mosman could be authorised as an operator on Tribal land.
The bond, managed by the Bureau of Indian Affairs, will support all planned activities across both projects. And, once the BIA completes the formal acceptance process, Mosman will be able to proceed with the assignment of the Seeley lease and begin the Sagebrush well test.
"Securing Tribal bonding is a pivotal achievement for Mosman, clearing the final hurdle to being recognised as operator on Tribal lands," interim chief executive Howard McLaughlin said.
"With the Council's approval now in place, we are moving quickly to complete the BIA process and unlock the full potential of both Sagebrush and Coyote Wash.
He added: "This step not only allows us to progress to the Sagebrush well test, but also sets the stage for a period of sustained operational momentum and value creation for our shareholders."