Mosman Oil and Gas (MSMN) has received approval from the Ute Mountain Ute Tribal Council in regard to the company's US$150,000 bond.
Approval of the bond is a prerequisite step to becoming an operator on Tribal land in Colorado.
The bond is managed by the Bureau of Indian Affairs (BIA) and will cover all activities across the Sagebrush and Coyote Wash helium projects
Once formally accepted by the BIA, Mosman will be authorised as operator, enabling the assignment of the Seeley lease and commencement of the Sagebrush well test.
The BIA will now complete the formal process of accepting and holding the bond. Once this is finalised, Mosman will be authorised as operator, enabling both the assignment of the Seeley lease and preparations for the extended well test at Sagebrush.
"Securing Tribal bonding is a pivotal achievement for Mosman, clearing the final hurdle to being recognised as operator on Tribal lands,” said Howard McLaughlin, Mosman's interim chief executive.
“With the Council's approval now in place, we are moving quickly to complete the BIA process and unlock the full potential of both Sagebrush and Coyote Wash. This step not only allows us to progress to the Sagebrush well test, but also sets the stage for a period of sustained operational momentum and value creation for our shareholders."
View from Vox
Following the positive market response to the recent resource evaluation at Sagebrush, it looks as though Mosman will now be able to enter a period of sustained newsflow. That ought to be looked on favourably by investors, given that there’s significant upside at both projects. The results will have the final say, of course, but it’s good to see the momentum building for projects that are well positioned in terms of infrastructure, and which show every sign of being financially viable.