AIM-listed Mosman Oil and Gas has advised that the Company has completed an evaluation on further workovers at Falcon-1 in the US, which has been shut in this year, and determined not to invest additional resources in this project.
Mosman has now reached an agreement to transfer the Falcon lease to 84 Energy Corp in exchange for the equipment on the lease. This means Mosman is not liable for potential future abandonment costs estimated to be up to US$200,000.
In addition, the undeveloped Galaxie exploration lease has not been renewed and has expired with no liabilities.
The Falcon lease generated AU$636,387 revenue and a gross profit of AU$286,528 in the year ending 30 June 2022. The Falcon and Galaxie leases, had a carrying value of AU$471,730 as at 31 December 2022 and this will be written off in the end of financial year accounts.
Mosman's Technical Director, Andy Carroll, said: 'Mosman's priority areas in Texas continue to be at the Cinnabar and Stanley projects, and this transaction enables the team to focus on building production at these higher value areas.'
Source: Mosman Oil and Gas
