Andy Carroll, CEO of Mosman Oil and Gas Ltd (LON: MSMN), spoke with Share Talk with the news that the company has received the final Government approval on the Farmin of its Australian project EP 145, in which Mosman currently holds a 100% interest.  

Work now continues to secure all required approvals for the next step of exploration by Farmin partner, Greenvale Energy Ltd (ASX: GRV / 'Greenvale').

Farmin Agreement

A Farmin Agreement was signed with a subsidiary of Greenvale in October 2023, where it can earn 75% interest by funding seismic acquisition and drilling a well (to a cap of AUD 5.5 million). With the approval from the Northern Territory government now in place,  the Farmin will proceed accordingly.

Greenvale will earn a 75% working interest in EP 145 by:

·      Paying AUD 160,000 in cash to Mosman within 5 business days.

·   Paying for the EP 145 Permit Year 3 Work Programme, including seismic acquisition and processing.

·     Funding the Permit Year 4 Work Programme, including drilling one well with a well cost cap of   AUD 5.5 million.

·   The Year 3 Work Programme is to be completed by August 2024; the cost of the seismic acquisition is estimated to be circa AUD 2 million.

·    The Year 4 Work Programme is to be completed by August 2025. The cost of drilling a well depends on many factors including the depth of a well and cost of drilling rigs at the time of drilling.

The seismic acquisition programme is planned for mid-2024, followed by drilling in 2025.

Background to EP145

Two wells have been drilled in EP 145 and both encountered hydrocarbons and were not tested for hydrogen or helium. Most wells in the Amadeus Basin that have been tested for helium have significant helium content.

A seismic data set was reprocessed by Mosman and it identified a large structure which may be an extension of the Mereenie anticline structure. Mosman published a Prospective Resource estimate for EP-145 in October 2022 (detailed below).

https://www.share-talk.com/mosman-oil-and-gas-lonmsmn-ceo-andy-carroll-progress-at-ep-145-project-with-govt-approval/