1st Jul 2016 16:01
LONDON (Alliance News) - New Zealand and Australia-focused oil exploration and development company Mosman Oil and Gas Ltd on Friday said it has made a CAD380,000 investment in Canada-listed Hemisphere Energy Corp.
Mosman said it made the investment through subscribing for 2.0 million shares at CAD19 cents per share.
Hemisphere Energy is an oil producer with assets in Alberta, US, and, in the first quarter, produced an average of 508 barrels of oil equivalent per day.
Mosman said its subscription was part of a larger 8.0 million share placing, with funds to be used for drilling to further increase production. Following the transaction, Mosman will hold 2.4% of Hemisphere Energy, it said.
"The investment in Hemisphere Energy is strategic as the company is expected to be re-rated from the planned drilling and the potential lift in commodity prices," said Mosman Chairman John Barr.
Shares in Mosman closed up 24% at 1.30 pence on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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