Mosman Oil and Gas Ltd (AIM: MSMN) informed stakeholders of its decision to withdraw from the Falcon project after a year of non-production from the asset.
Following a detailed assessment of the Falcon-1 well, the company concluded that further workovers weren’t a viable investment. Consequently, they’ve arranged to hand over the Falcon lease to 84 Energy Corp, receiving equipment present on the lease as part of the deal. This move spares Mosman from possible future abandonment fees, which might reach up to US$200,000.
The company also mentioned the expiration of the untouched Galaxie exploration lease, which comes with zero obligations.
Mosman’s Technical Director, Andy Carroll, said: “Mosman’s priority areas in Texas continue to be at the Cinnabar and Stanley projects, and this transaction enables the team to focus on building production at these higher value areas.”
For the financial year ending on 30 June 2022, Falcon reported an AU$ 636,387 revenue with a gross profit of AU$ 286,528. The project’s recorded carrying value of AU$ 471,730 will be adjusted in the year-end financial statements.
