TIDMMSMN
RNS Number : 8367R
Mosman Oil and Gas Limited
02 July 2020
2 July 2020
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Placing to Raise GBP400,000
Blackstone Settlement and Sale of Welch update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces it has undertaken a
placing to raise GBP400,000 (before expenses) by the issue of
500,000,000 new ordinary shares (the "Placing Shares"), at a
placing price of 0.08p (the "Placing Price") (the "Placing").
Investors are also receiving one warrant to subscribe for a further
new ordinary share at an exercise price of 0.15p with a term of 12
months (the "Placing Warrants"). The Placing is unconditional save
for admission of the shares to trading on AIM ("Admission").
The net proceeds raised from the Placing will be used towards
the drilling of the Falcon well at the Champion Project in
Texas.
The Champion Project
Under the farm-in agreement with Baja Oil and Gas LLC ("Baja"),
Mosman has a 60% working interest and will pay 80% of the first
well in the Champion Project. This well has an estimated total cost
of cUSD700,000 to drill and complete. Baja has a 30% interest and
will pay 10% of the well cost. Contour Exploration and Production
LLC, owned by Howard McLaughlin, Mosman's US Manager, has 10% of
the lease and will pay 10% of the well cost.
In addition to Falcon, several other prospects in the Project
area have been mapped by Baja using 3D seismic, including Galaxie,
Durango, Corona East and Corona West.
John W Barr, Chairman of Mosman , commented: "Falcon is one of
several prospects on the 240 acre Champion lease which is adjacent
to existing production facilities. Mosman has 60% working interest
in the lease, and this level of equity means that a successful well
would enable a significant increase in net production to Mosman.
Falcon will also provide us with important geological information
to refine several prospects on the lease, including Galaxie which
already has a well plan and drilling location identified.
"We expect to shortly complete planning, start preparation of
the Falcon wellsite in July, spud the well in August, and announce
results a few weeks later.
"In addition to Falcon activity, the workover of the Stanley-1
well is now underway and should be completed next week. The
workover at Greater Stanley awaits approvals by the relevant
authorities.
"Significantly, the Stanley Operator has today indicated that
the drilling of Stanley-4 is now planned for August 2020. An AFE
for that drill (where the site works have already been completed)
is expected shortly. With reduced drilling activity, more rigs are
available, and this is expected to result in lower drilling
costs.
"This placing, along with the recent Blackstone settlement will
result in Mosman having cash of over AUD 1.0 million. The pending
sale of the Welch Oil Field announced on 20 May 2020 and due to
complete shortly, could increase this to AUD 1.4 million. Mosman is
now able to invest in several of our highest-ranked projects.
Recent swift action by the Board has resulted in an exceptional
turnaround from the position in March 2020, when falling oil prices
and the pandemic led to a severely challenging business
environment."
Admission to AIM and Total Voting Rights
The Placing is conditional on, inter alia, the Placing Shares
being admitted to trading on AIM. Application has been made to the
London Stock Exchange for the Shares, which will rank pari passu
with the Company's existing issued ordinary shares, to be admitted
to trading on AIM and dealings are expected to commence at 8:00
a.m. on 9 July 2020.
Following Admission of the Placing Shares, the Company's share
capital and total voting rights will comprise 1,585,810,968
ordinary shares of no par value and the Company does not hold any
shares in treasury.
Consequently, the above figure may be used by shareholders in
the Company as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the share capital of the Company
under the Company's Constitution.
Competent Person's Statement
The information contained in this announcement has been reviewed
and approved by Andy Carroll, Technical Director for Mosman, who
has over 35 years of relevant experience in the oil industry. Mr.
Carroll is a member of the Society of Petroleum Engineers.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside
information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.
Enquiries:
Mosman Oil & Gas Limited John NOMAD and Broker
W Barr, Executive Chairman Andy SP Angel Corporate Finance LLP
Carroll, Technical Director Stuart Gledhill / Richard Hail / Soltan
jwbarr@mosmanoilandgas.com Tagiev
acarroll@mosmanoilandgas.com +44 (0) 20 3470 0470
Alma PR Joint Broker
Justine James Monecor (London) Ltd
+44 (0) 20 3405 0205 trading as ETX Capital
+44 (0) 7525 324431 Thomas Smith
mosman@almapr.co.uk +44 (0) 20 7392 1432
Updates on the Company's activities are regularly posted on its
website
www.mosmanoilandgas.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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