Georgina Energy Plc, GEX.L, a helium, hydrogen and natural resources development company in Australia, is pleased to announce that it has reached an agreement to acquire 100% of EPA155 (Mt Winter) held by Mosman Oil & Gas' subsidiary Oilco Pty Ltd, subject to the execution of formal Contracts of Sale.
The purchase consideration for the deal is AU$350,000, which will be funded from Georgina's current cash reserves. This exit from the Amadeus Basin is in line with Mosman's strategy, having announced similar disposals earlier in the month. The deal allows Georgina to continue as planned with preparations ahead of being granted the exploration permit for Mt Winter. Under this agreement, Georgina is entitled to 100% of the returns from any future production, less a modest 2.5% royalty to Mosman. Additional production royalties will include 10% of sales receipts, less certain deductions, to the Northern Territory Government under the Petroleum Royalty Act 2023 NT, and c.3-4% (negotiable) on the same basis to the Central Land Council, benefiting the relevant Traditional Owners.
Georgina remains fully funded and is working towards drilling approval from DEMIRS and drilling the Hussar prospect in the Western Australian Officer Basin where it is targeting a massive prospect of c.350 km2 for helium, hydrogen and natural gas.
In relation to the Mt Winter (EPA155) project, the Company is currently negotiating the execution of the pre-grant Aboriginal Land Rights Act Agreement ("ALRA Agreement"). The Company's lawyers will file a formal notice with the Northern Territory Department of Mining and Energy (DME) under the Petroleum Act 1984 (NT) to secure the granting of the exploration permit. Upon the granting of the exploration permit, and in accordance with the Sale and Purchase Agreement between Oilco and Westmarket Oil and Gas, the Company's 100% interest will be registered. The Company will then proceed with the planned seismic reprocessing and remapping prior to submission of an application for drilling approval for the Mt Winter 1 re-entry.
Anthony Hamilton, Chief Executive Officer of Georgina Energy, commented:
"The agreement to acquire 100% of the revised Mt Winter exploration permit has significant potential benefits to the Company for a very reasonable price. I'd like to thank the Mosman team for their co-operation to this point, working together to accomplish our respective objectives. This deal further strengthens Georgina's portfolio and increases the potential shareholder value from this asset. This slight change in the ownership structure will not affect our expected timeline to develop Mt Winter and we are progressing well with the outstanding requirements."
Terms of Agreement:
· Purchase consideration AU$350,000 cash for the purchase of the total interest of EPA155 to be funded from current cash reserves.
· Royalty of 2.5% of gross sales from the well head.
· Deposit of AU$50,000 cash on execution of the formal Sale and Purchase Agreement.
· Balance of AU$300,000 cash payable on formal granting of EPA155 exploration permit.
· The farm-in agreement between the Company and Mosman will be superseded by the purchase
· The Company will no longer require a Joint Operating Agreement ('JOA") between the Joint Venture parties upon the successful completion of the Sale and Purchase Agreement.