Mosman Oil and Gas Limited announced the Central Land Council (CLC) has agreed to extend the negotiating period in respect of the company's EPA 155 permit application until October 2024. With respect to EPA 155, Mosman has entered in to a Farmout Agreement with (the Farminee) Westmarket Oil & Gas Pty Ltd. The Farminee is responsible for Native Title negotiations required for the permit to be granted. Westmarket has advised the Company that the CLC is organising the required on-land meeting for early in 2024.

The Farminee will also undertake technical work including a Gravity and a Seismic Survey in accordance with the permit work programme, and thereby earn a 75% working interest and become operator of the permit. Mosman will retain a 25% working interest in the permit. On drilling of an exploration well, the Farminee may earn an additional 15% working interest by carrying Mosman through the cost of the well.

In this scenario Mosman would retain a 10% working interest in the permit. In addition to the forward work programme obligations set out above, Mosman received AUD 15,000 from the Farminee in consideration for past costs and will receive a further AUD 15,000 following completion of the required seismic re-processing work. There are various circumstances that may allow either party to terminate this Farmout Agreement.