20th Aug 2019 13:13
(Alliance News) - Mosman Oil & Gas Ltd on Tuesday said it has been advised that Baja Oil & Gas LLC has identified a potential cost savings at the Champion project in Texas.
Mosman owns a 60% working interest in the Champion project, for which Baja is the operator. The project contains the Falcon prospect and the Galaxie prospect.
The AIM-listed exploration and production company said Baja intends to acquire and re-purpose an existing well to drill and test the Falcon target. Once this opportunity has been evaluated, Mosman said it expects the operator to provide updated drilling cost estimates and a revised schedule, which may result in a delay from the current third quarter of 2019 drilling expectation.
Separately, Mosman said it has signed an agreement to terminate the farm-in deal such that Xstate Resources Ltd no longer has any rights or obligations in respect of the Champion project.
The agreement was signed back in May, but Mosman said Xstate no longer wishes to proceed with the farm-in at Champion project.
Mosman shares were trading 3.4% higher in London on Tuesday at 0.27 pence each.
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