(Alliance News) - Mosman Oil & Gas Ltd on Monday provided investors with further details on a potential partnership for helium production.
Mosman Oil & Gas is a Sydney-based oil and gas company with projects in Australia and the US.
In April, Mosman executed a non-binding heads of agreement for a potential Helium offtake from EP 145, its exploration block in the Amadeus Basin in central Australia.
The agreement sets out a framework between Mosman, Beijing Sinoscience Fullcyro Technology Co Ltd and Beltway Group.
Whilst it is not binding at this stage, it establishes a formal relationship from which to plan and agree future binding documents, Mosman said.
Before a more formal offtake agreement can be finalised, EP 145 requires further exploration, including seismic and drilling, and then following a reserve estimate, production planning and a decision to undertake a commercial development.
Mosman noted that "no such commercial development plans are in place at this stage and will be subject to a number of material matters including successful exploration, funding and regulatory approvals."
"Mosman cautions that there can be no certainty that formal agreements will develop from the HOA and notes that at this stage there are many matters to agree including pricing, costs, the terms of any financial support or other material matters which will form the basis of any future formal agreements with Fullcyro and Beltway," it added.
Shares in Mosman closed flat at 0.035 pence each on Monday.
By Sophie Rose, Alliance News reporter
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Mosman Oil Gas (MSMN)