5th Jan 2016 08:26
LONDON (Alliance News) - Mosman Oil & Gas Ltd on Tuesday said it has issued a review notice to Origin Energy Ltd over the acquisition of the South Taranaki licence in New Zealand after the Brent oil price benchmark dropped below USD40 per barrel.
Brent was trading at USD36.86 a barrel early Tuesday.
Mosman is acquiring a 70% stake in the licence from Origin but has now issued the notice in order to enter good faith negotiations of amendments to the agreement given the fall in world oil prices.
If no agreement is reached within 30 days on an amended deal, either party has the option to terminate the agreement, Mosman said.
Mosman shares were down 6.4% to 2.92 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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