14th May 2019 10:52
LONDON (Alliance News) - Mosman Oil & Gas PLC has raised GBP750,000 to fund drilling work in the US state of Texas, the company announced on Tuesday.
Mosman has placed 250 million new shares at a price of 0.3 pence each. Mosman shares were down 31% on Tuesday morning, at 0.30p.
Work will go towards Mosman's share of drilling two wells at the Champion project, which contains the Falcon and Galaxie prospects. Mosman's share of the work is approximately GBP235,000 per well.
This comes a week after Mosman signed a farm-out deal at Champion with Australia's Xstate Resources Ltd. The deal will see Mosman's stake fall to 35% from 60%, but Xstate will help fund development costs.
Mosman hopes to drill the first well at Champion in 2019's third quarter.
Mosman may also use funds to add to its Texas acreage with bolt-on deals. It is also considering further workovers at the Welch field, also Texas, as well as seismic work at Australia's Amadeus Basin.
Elsewhere in Texas, Mosman has now installed flow lines and upgraded facilities to help increase production at the Stanley field, with two more wells also being lined up.
Related Shares:
Mosman Oil & Gas