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LONDON (Alliance News) - Mosman Oil & Gas Ltd on Wednesday announced a farm-out agreement for the Champion project in east Texas.
Mosman shares were 6.5% higher on Wednesday morning at 0.49 pence each.
The deal has been signed with Sydney-listed Xstate Resources Ltd. Mosman already owns 60% of Champion, but the farm-out will see this fall to 35%.
On the first lease area, Xstate will get 25% by paying USD50,000 upfront and then funding 33% of costs to drill a well, complete it, and then install production facilities.
Xstate will then on the second lease area get another 25% by funding 33% of drilling costs.
Mosman Chair John Barr said: "The technical advantage of 3D seismic and directional drilling has been demonstrated at Stanley, and we look forward to applying this technology to drilling at Champion, as well as further development wells at Stanley and Challenger projects in due course."
