Mosman Oil and Gas has secured a new lease adjacent to the Cinnabar lease in Texas, USA. Mosman is the Operator and Mosman will have a 78% working interest.
Acquisition
When Mosman acquired the Cinnabar lease it undertook a detailed review, including the acquisition and interpretation of 3D seismic data.
The technical work identified the potential for the field to extend beyond the circa 350 acre Cinnabar lease. Mosman applied to BPX Energy to lease 120 acres of available acreage adjacent to the Cinnabar lease and BPX have now agreed to lease this area to Mosman et al.
The principal terms of the lease are:
1. Payment of USD 36,000 (AUD 54,000)
2. Initial term of eighteen months that may be extended by the drilling and production of a well. Whilst there is production, the lease would be 'Held by Production'
3. A Royalty of 25% of gross production (which is standard in this part of Texas)
Mosman's technical work has identified a preferred drilling location within the new lease. The drilling of a well on this lease is now the focus of attention for Mosman and the Joint Venture parties. Further details of timing, location and costings will be announced in due course. Funding of the well will be considered as part of the current Corporate Review that is underway.
Source: Mosman Oil and Gas
