Mosman Oil and Gas Limited Farm-out of Champion Project (3376Y)
May 08 2019 - 2:00AM
UK Regulatory
TIDMMSMN
RNS Number : 3376Y
Mosman Oil and Gas Limited
08 May 2019
8 May 2019
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Farm-out of Champion Project
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, advises that it has today
executed a Farm-out agreement for the Champion Project with the ASX
listed Xstate Resources Limited ("Xstate") (ASX:XST).
Currently Mosman owns a 60% working interest in the Champion
Project, containing the Falcon prospect ("Falcon") and the Galaxie
prospect ("Galaxie").
Under the term of the Farm-out Xstate will earn:
1. A 25% interest in the first lease area drilled by paying USD
50,000 and 33% of the well cost to drill, complete and install
production facilities (capped at 33% of USD 600,000, and 25% of any
additional cost), and
2. A 25% interest in the second lease area by paying 33% of the
well drilling cost (capped at 33% of USD 450,500, and 25% of any
additional cost).
Therefore, should Xstate complete its obligations Mosman's
working interest will be reduced from 60% to 35%.
This Farm-out agreement means Mosman will retain a material
interest in these leases, whilst significantly reducing the cost
and funding requirements to Mosman of drilling these two wells
which are scheduled to be drilled in 2019.
Champion
Mosman currently has a 60% working interest in the Champion
Project, located in East Texas. There is established oil and gas
production and infrastructure in the area. Several prospects have
been identified using 3D seismic, including Falcon and Galaxie.
Baja Oil and Gas LLC has a 40% interest in the Champion Project
and remains as Operator.
John W Barr, Chairman, said: "The technical advantage of 3D
seismic and directional drilling has been demonstrated at Stanley,
and we look forward to applying this technology to drilling at
Champion, as well as further development wells at Stanley and
Challenger projects in due course."
Competent Person's Statement
The information contained in this announcement has been reviewed
and approved by Andy Carroll, Technical Director for Mosman, who
has over 35 years of relevant experience in the oil industry. Mr.
Carroll is a member of the Society of Petroleum Engineers.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside
information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.
Enquiries:
Mosman Oil & Gas Limited NOMAD and Broker
John W Barr, Executive Chairman SP Angel Corporate Finance LLP
Andy Carroll, Technical Director Stuart Gledhill / Richard Hail
jwbarr@mosmanoilandgas.com / Soltan Tagiev
acarroll@mosmanoilandgas.com +44 (0) 20 3470 0470
Gable Communications Limited Joint Broker
Justine James / John Bick SVS Securities Plc
+44 (0) 20 7193 7463 Tom Curran / Ben Tadd
mosman@gablecommunications.com +44 (0) 203 700 0078
Updates on the Company's activities are regularly posted on its
website www.mosmanoilandgas.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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