Mosman Oil and Gas Limited (AIM:MSMN) the helium, hydrogen and hydrocarbon exploration, development and production company, is pleased to announce completion of the Sale and Purchase Agreement (SPA) and Transfer of Title on permit EP 145, Amadeus Basin, NT, Australia to Echelon Resources Limited ("Echelon", ASX:ECH).`
Summary
- Mosman has received AU$440,000 (AU$400,000 plus GST) as part of the completion of the SPA and Transfer of EP-145 Permit to Echelon
- Mosman retains a 5% royalty on helium and hydrogen
- The contract includes an option for Mosman to re-acquire any area of EP 145 when Echelon no longer wishes to explore in, or produce from, any area of the licence.
Echelon is a participant in the Mereenie, Palm Valley and Dingo oil and gas fields, and is drilling wells and selling hydrocarbon gas to the NT government. EP-145 is located within Echelon's core asset area in the Amadeus Basin, Northern Territory with robust infrastructure and identified exploration opportunities. Echelon has indicated it plans to acquire high resolution 3D seismic followed by drilling to define the West Walker-1 gas discovery with the aim of tying any development of the gas resource into the Northern Territory gas market. This provides the fastest potential path to production and commercialisation of EP-145.
The acquisition of seismic and drilling of wells will add to the geological understanding of EP-145. Echelon's focus is hydrocarbons and the portion of EP-145 adjacent to the Mereenie gas field. Once Echelon has further defined its area of interest and advised Mosman that it does not wish to extend the exploration licence, Mosman can elect to apply to continue helium exploration in the other parts of EP-145.
Payment from the sale of EP-145 will be used to fund exploration and appraisal activity in Mosman's US assets. This transaction saves Mosman estimated costs of approximately AU$2.5 million that would have been required as part of a Year Three permit work programme commitment.
Further details in respect of the sale of EP-145 were included in the Company's announcement of 14 January 2025.
Andy Carroll, Chief Executive Officer of Mosman, said
"Completion of the sale of EP-145 provides funding to support the ongoing appraisal and exploration at Mosman's priority projects in the US which have proven helium resources, located near existing helium production with access to infrastructure and to markets.
"We are pleased to retain a 5% royalty interest in EP-145's helium potential at no cost to Mosman, with the potential to re-acquire that acreage with the benefit of further exploration activity having been conducted in EP145 in the interim."