18th Jan 2016 12:41
LONDON (Alliance News) - Mosman Oil and Gas Ltd shares fell on Monday after it said it will withdraw its application for an exploration permit over the Officer basin in Australia, meaning the company will not be involved in the project moving forward.
Mosman shares were down 14% to 1.62 pence per share on Monday morning.
Mosman held a 25% stake in the Officer Basin onshore application STP-EPA-0071, which was awaiting for an exploration permit. However, that permit could only be awarded after the Native Title Act requirements were met, which deal with heritage clearance, land access and other traditional land owner issues.
"Unfortunately this has not been achieved and Mosman will now withdraw from the application and seek to cancel its involvement in the project," said the company.
Mosman acquired the interest in that application when it acquired Petroleum Portfolio Pty Ltd, which had rights to 25% of the application from Mosman Technical Director Andy Carroll in return for 9.0 million Mosman shares.
Mosman said, under the terms of the agreement, if the application for the permit was not granted by last Friday, then Carroll has 90 days (or until April 15) to advise Mosman whether he will acquire those shares for a total of AUD900,000, or relinquish the shares.
"The second alternative appears to be the most likely outcome, and in that case a shareholder meeting would be called in approximately 90 days' time to approve the buy back. That meeting must be held by within 120 days after the advice from Mr Carroll is received," it said.
That meeting, if held, would be held on August 15 at the latest.
"It is very disappointing that the joint venture parties have not been able to secure the title after over two years of negotiations but, given market conditions, Mosman's primary focus remains making progress on its core assets in its portfolio and in other advanced project opportunities," said Mosman Chairman John Barr.
By Joshua Warner; [email protected]; @JoshAlliance
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