11th May 2020 11:34
(Alliance News) - Mosman Oil & Gas Ltd on Monday said it has agreed terms for the farmout of the EP 155 permit application in Australia with Georgina Energy PLC.
Mosman's shares leapt 80% to 0.099 pence in London in late morning trading.
The agreement has been signed by Mosman and wholly-owned Georgina subsidiary Westmarket Oil & Gas Pty Ltd. Georgina is an unlisted public company which focuses on helium and has various assets located in the Amadeus Basin in the Northern Territory of Australia.
Westmarket will conduct technical work as specified by the permit work programme, earning a 70% working interest and becoming permit operator while Mosman keeps hold of a 30% working interest.
Once the first well is drilled, Westmarket may opt to carry Mosman through the cost of the well, thereby earning another 15% working interest while Mosman's interest would then drop down to 15%.
On top of forward work programme obligations, Westmarket will also pay an immediate AUD15,000 contribution to cover past costs - around GBP7,890 - plus another AUD15,000 once the necessary seismic re-processing work is complete.
Mosman will still keep its 100% interest in the EP 145 permit, also located in the Amadeus Basin.
Chair John Barr said: "We are pleased to have concluded the farmout on EPA 155 so that the project can be progressed at no cost to Mosman. The farminee interest is an endorsement of the potential of the permit area for both hydrocarbons and helium."
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Mosman Oil & Gas