Strawn Oil Project

Mosman owns 50% of the Strawn Oil Project located in Texas.

The Project is operated as a joint venture with Blackstone Oil & Gas, Inc. (“Blackstone”). Mosman acts as Operator on the Project.

Details of the Strawn Oil Project

The Project is located in Young and Archer Counties, Texas, approximately 200 km west of Dallas. The Project consists of 27 existing well, many of which were not in production at the time of acquisition. The Project is some 1,300 acres spread over 7 established leases which are documented in accordance with local requirements. The leases do not currently have a resource identified though production on the leases by the vendor has been occurring since 2003.

Royalties and Taxes

Royalties vary for each lease and average 20%, which is in the normal range for leases in the area.
A state severance tax of 4.6% applies to the market value of oil produced in Texas. In addition, any profits resulting from oil production will be subject to US income tax.