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Mosman Oil and Gas Ltd, a company in the Oil and Gas sector, experienced an uptick in its share price following the announcement of an extension for its EP145 Permit by the Northern Territory Government in Australia. The new permit term extends until February 2027 and includes a six-month suspension of work obligations until February 2025.
The extension provides additional time for the exploration project, which is a joint effort with Greenvale Energy. The current exploration campaign involves seismic acquisition and subsequent drilling activities. Andy Carroll, Chief Executive of Mosman Oil (LSE:MSMN), expressed satisfaction with the extension, noting that it is crucial due to the NT elections and allows the project to advance through its planned seismic and drilling phases.
Mosman holds a 25% stake in the EP145 project, where previous drilling operations encountered hydrocarbons. The project has identified a significant extension of the Mereenie structure through reprocessed seismic data. In 2022, a prospective resource estimate was published, detailing substantial quantities of gas, helium, and hydrogen.
The gas estimates included a low estimate of 12 billion cubic feet (Bcf), a best estimate of 440 Bcf, and a high estimate of 2,290 Bcf. Helium estimates were reported as 0.3 Bcf (low), 26.4 Bcf (best), and 229 Bcf (high). Hydrogen estimates were 0.24 Bcf (low), 26.4 Bcf (best), and 275 Bcf (high). These estimates reflect the potential of the EP145 permit area and the ongoing exploration efforts.
Upon completion of the next phase of the exploration program, Mosman and its partner will have the option to apply for an additional five-year term for the permit. In London trading, Mosman Oil and Gas shares increased by 28%, reaching 0.069p.
The extension of the EP145 Permit and the progress of the exploration campaign underscore Mosman Oil and Gas's continued engagement in the Northern Territory’s energy sector, with a focus on advancing its exploration and development projects.
