Mosman Oil and Gas has announced that the Minister for Department of Industry, Tourism and Trade in the Northern Territory Government in Australia ('NT Government') has approved Mosman's application for a suspension and extension for EP145.
EP 145 Extension
The 12-month suspension and extension approval provides the Company with additional time in which to complete the permit work programme. Mosman sought the approval due to delays in obtaining various approvals for reasons including COVID19 and other factors.
The approval means that Mosman will have until 21 August 2024 to complete the Year 3 Work Programme that includes:
- Acquisition of 100 km 2D seismic survey
- Seismic data processing and interpretation
- Identification of well locations
- Detailed well planning and preparation
The Year 4 Work Programme must be completed by 21 August 2025 and includes:
- Drill first exploration well
- Assess drilling results and plan for next well
The Year 5 Work Programme must be completed by 21 August 2026 and includes:
- Drill second exploration well
- Analysis and interpretation of data
- Reservoir and geological studies
- Prepare to apply for Retention Lease, Production License, Permit Renewal and Relinquishment of permit area
Mosman continues to actively progress with technical work to advance the helium and hydrogen exploration potential in addition to the previously known hydrocarbons discovered on the West Walker anticline, an extension of the Meerenie Anticline, in EP-145.
Prospective Resource
Mosman has estimated gross Prospective Resource volumes for hydrocarbons, helium, and hydrogen associated with the Walker Creek Anticline as a lead within the boundaries of the EP-145 permit using a deterministic approach and applying the SPE PRMS standard.
Source: Mosman Oil and Gas Ltd, 24 October 2022
Exploration Programme
Recently, a Mosman subsidiary, was awarded a grant of 50% of costs capped at AU$50,000 for the innovative targeting of hydrogen and helium using soil sampling to advance exploration activity. That work is expected to take place later in 2023. The results may assist in understanding the movement of helium and hydrogen and facilitate the optimal location of future drilling.
The seismic acquisition (now required by 21 August 2024) still requires Aboriginal Areas Protection Authority ('AAPA') approval (which was obtained but expired after 24 months) and NT Government approval of the proposed operations. AAPA is an independent statutory authority established under the Northern Territory Aboriginal Sacred Sites Act. It is responsible for overseeing the protection of Aboriginal sacred sites on land and sea across the whole of Australia's Northern Territory.
Corporate Review
As announced, Mosman is currently undertaking a corporate review, and the granting of the extension is a key part of that process as it provides the clarity on the time available to complete the Work Programme that would be required for an admission.
In addition, Mosman has appointed SRK (Australia) ("SRK") to undertake an independent review of EP 145 and EPA 155 (which is subject to a farm-in agreement with Georgina Energy PLC). SRK's first task is the preparation of a valuation report primarily for providing a basis for a book value for the assets.
Mosman is also in the process of modifying the corporate structure. Mosman has now formed a new wholly owned subsidiary, Adagio Resources Ltd ("Adagio") and the ownership of both Trident and OilCo is currently in the process of being transferred to Adagio. The change does not have any effect on Mosman's beneficial ownership or operations.
Mosman owns all the shares in Trident Energy Pty Ltd ("Trident") (EP 145) and OilCo Pty Ltd ("OilCo") (EPA 155).
Several other matters remain under consideration including the potential distribution or sale of the shares in the Company's subsidiaries to existing shareholders, ensuring there are no tax issues or identifying any that may arise.
The Board decision will consider all these and other factors, and any proposed transaction is likely to require shareholder approval.
Cash position
As at 31 May 2023, Mosman had cash at bank of circa AU$1.2 million.
Mosman's Chairman, Mr. John W Barr, said: 'I am extremely pleased with the understanding of the Northern Territory Government ongoing endorsement of our continued exploration and look forward to receiving the outcome of SRKs independent review on EP145 and EPA155.'
Source: Mosman Oil & Gas
