Mosman Oil & Gas Ltd shares rose on Monday after the company said it has received approval for a farm-in at one of its Australian gas projects.
Mosman is a US and Australia-focused natural resource development company. Shares in Mosman were up 5.6% at 0.019 pence each in London on Monday.
Mosman has received final governmental approval for the farm-in of its EP 145 project, located in the Australian Northern Territory, in which it holds a 100% interest.
With the agreement of the Northern Territory government in place, Mosman’s farm-in partner Greenvale Energy Ltd is now able to earn a 75% interest in EP 145.
According to the terms of the farm-in, Greenvale must pay A$160,000, £84,000, in cash to Mosman within five business days.
The firm must also fund a seismic data acquisition programme and drill one well at EP 145 with a cost cap of A$5.5 million.
Mosman said the seismic acquisition is scheduled for completion by August, followed by the drilling programme in August 2025.
Two wells have been drilled at EP 145, Mosman said, with both encountering hydrocarbons.
A prospective resource estimates for EP 145, published by Mosman in 2022, reported 2,290 billion cubic feet of total gas, with 229BcF helium and 275BcF hydrogen.
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