Mosman finalizes sale of EP 145 permit to Echelon

Published 06/06/2025, 07:52
Mosman finalizes sale of EP 145 permit to Echelon

LONDON - Mosman Oil and Gas Limited (AIM:MSMN), an exploration and production company focused on helium, hydrogen, and hydrocarbons, has announced the completion of its sale of the EP 145 permit in the Amadeus (BME:AMA) Basin, Northern Territory, Australia, to Echelon Resources Limited (ASX:ECH). The deal, finalized today, resulted in Mosman receiving AU$440,000, inclusive of Goods and Services Tax (GST).

As part of the agreement, Mosman retains a 5% royalty on any helium and hydrogen produced from the permit area. Additionally, the company has secured an option to reclaim any section of EP 145 should Echelon decide to cease exploration or production in that part of the license.

Echelon, an active operator in the Mereenie, Palm Valley, and Dingo oil and gas fields, has indicated plans to further explore EP-145 by acquiring high-resolution 3D seismic data and drilling wells. The aim is to define the West Walker-1 gas discovery and potentially integrate any development into the Northern Territory’s gas market, offering a swift route to production and commercialization.

The sale proceeds will support Mosman’s exploration and appraisal activities in the United States, where the company has identified helium resources. This transaction is also expected to save Mosman approximately AU$2.5 million in costs, which would have been required for a Year Three work program commitment on the permit.

Mosman’s CEO, Andy Carroll, expressed satisfaction with the sale, highlighting the financial boost it provides for the company’s priority projects in the US and the retained interest in the helium potential of EP-145 at no additional cost. Carroll also noted the opportunity to re-acquire the acreage with the advantage of further exploration by Echelon.

This announcement contains information that is considered inside information under the Market Abuse Regulations, which is now in the public domain following this release. The sale of EP 145 was previously detailed in the company’s announcement on January 14, 2025.

This news article is based on a press release statement from Mosman Oil and Gas Limited.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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