Champion Project

Mosman originally acquired a 60% working interest in the 240 acre Champion Project, which includes the Falcon and Galaxie prospects. The Champion Project is also located in East Texas and has several potential drilling locations identified using the same 3D seismic techniques as the Stanley Project.  

Recently, Mosman executed a Farm-out agreement with the ASX listed Xstate Resources Limited.

 

Originally Mosman owned a 60% working interest in the Champion Project, containing the Falcon prospect and the Galaxie prospect.

 

Under the term of the Farm-out Xstate will earn:

 

  1. A 25% interest in the first lease area drilled by paying USD 50,000 and 33% of the well cost to drill, complete and install production facilities (capped at 33% of USD 600,000, and 25% of any additional cost), and

  2. A 25% interest in the second lease area by paying 33% of the well drilling cost (capped at 33% of USD 450,500, and 25% of any additional cost).

 

Therefore, should Xstate complete its obligations Mosman’s working interest will be reduced from 60% to 35%.

 

Baja Oil and Gas LLC has a 40% interest in the Champion Project and remains as Operator.

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, advises that it has today executed a Farm-out agreement for the Champion Project with the ASX listed Xstate Resources Limited.