Business
Arkoma Update and Further Option Extension
Arkoma Update and Further Option Extension.
About this update from Quantum Helium Limited
[{"type":"text","content":"\n \nRNS Number : 5122W Mosman Oil and Gas Limited 15 November 2017 \n\n15 November 2017\n \nMosman Oil and Gas Limited\n (\"Mosman\" or the \"Company\") \n \nArkoma Stacked Pay Project Update and Further Option Extension\nMosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, provides a further update in respect to the Arkoma Stacked Pay Project (\"Arkoma\" or the \"Project\") in Oklahoma, USA. \nSummary\nTo date the focus has been to gather information to update the geological model and quantify reserves and resources. Additional flow tests and subsequent technical analysis is required in order for Mosman to complete this and as a result Mosman and the Operator have agreed to further extend the first option exercise date from 15 November 2017 to 28 February 2018. There is no change to the Second Option date of March 2018. \n \nAdditional work is still required to inform Mosman's investment decision and Mosman will fund an ongoing work program at a cost of USD$125,000 with a corresponding reduction of the First Option exercise price from USD$1 million to USD$875,000. This schedule also allows the full investment decision to be made in the first quarter of 2018, with the benefit of a more complete data set as this significant investment requires the benefit of full technical due diligence and integration of the Moyes and Co reserves report currently being prepared.\nDetails of the extension\nAs per in the Company's announcement of 23 May 2017, Mosman currently owns 10% of the Project and holds two options to increase its interest to 55%:\n1. A first option to acquire a further 20% of the Inland Assets for USD$1 million expiring on 15 November 2017, having been extended from the original 10 October 2017 expiration (the \"First Option\");\n2. Subject to the First Option being exercised, a second option to acquire a further 25% of the Inland Assets for USD$42...