Challenger Project on the Cinnabar Lease

Mosman acquired working interest in the 348.83 acre Cinnabar Lease which includes the Challenger Project located between Mosman's Stanley and Champion projects in East Texas.

There are two wells drilled on the Lease which have previously produced significant quantities of oil but are now shut in.  The Operator maintains the Lease as "Held by Production" (HBP) by periodically opening one of the wells to produce a few barrels of oil.

In 2021 Mosman engaged a third party group to review Cinnabar including potential revised drill locations.  As a result of this, the decision was made to proceed and drill the Cinnabar-1 well.

Mosman is the Operator and contract operator services are provided by Contour Exploration and Production,  a company owned by, Mr Howard McLaughlin.  In exchange for the providing these services, Contour has earned a 12% interest in the Lease.  In July 2022 Mosman farmed out an additional 10% of the Lease and how has a 75% working interest which it intends to retain.

A Reserve Report indicates the project has Reserves (gross) as follows (thousands of barrels of oil equivalent “MBOE”):

Proved
Developed
Producing
Proved
Developed
Behind Pipe
Proved
Undeveloped
Total
Proved
Total
Probable
Total
Proved
Plus Probable
2
49
614
665
184
849

This Reserves Report was prepared by a third party independent petroleum engineering firm for Barry Lasker, a Managing Partner at Baja, in June 2017 and conforms to SPE-PRMS petroleum guidelines. The royalties on the lease are circa 25%.

Cinnabar Site