7th Feb 2019 11:41
LONDON (Alliance News) - Mosman Oil & Gas Ltd on Thursday said it has close to trebled its interest in the Challenger oil project in east Texas.
Shares in Mosman were down 3.9% at 0.24 pence on Thursday.
Mosman acquired a 16% interest in Challenger back in 2018 but will pay USD35,760 to acquire another 31% stake, bringing its total ownership to 46.8%. The acquisition will be paid for in two equal instalments, the first of which has already been paid and the other is due in 90 days.
Mosman will become operator of the project once the acquisition is complete. Royalties on the lease are approximately 25%.
There is an existing reserve report on Challenger confirming proven plus probable reserves of 849,000 barrels of oil equivalent gross.
"Mosman maintains its objective of increasing production from its projects, and continues to progress several projects within its portfolio. The technical work completed on the Challenger project is encouraging. We are pleased to increase our ownership of the production lease in this proven producing area," said Mosman Chair John Barr
"The next step for Challenger is to make final technical decisions on the wells to be drilled and then consider the various funding alternatives that are available," Barr added.
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