29th Nov 2016 09:21
LONDON (Alliance News) - Mosman Oil & Gas Ltd on Tuesday said the vendor of Buccaneer Operating LLC and the 80% interest in the Pine Mills producing oil field will not close the acquisition with Mosman as a pre-emptive right has been exercised.
Shares in Mosman were down 41% at 1.00 pence on Tuesday following the announcement.
The group earlier this month said it will buy an 80% stake in the Pine Mills oil field in Wood County, Texas and Buccaneer, which operates the field, from Cue Energy Resources Ltd for USD975,000 in cash.
The remaining 20% working interest in the field is held by a subsidiary of Gale Force Petroleum Inc and Hammerhead Managing Partners LLC. At the time, Mosman had said there was a 20-day pre-emptive rights period which began once Cue gave notice to Gale and Hammerhead that it was selling the working interest. Following settlement, Mosman would have a pre-emptive right if there is any subsequent sale of any of the other 20%, it had said.
The purchase was conditional on standard settlement issues, including this 20-day pre-emptive right period and joint venture approvals, though noted the legal issues occuring between Gale Force and Hammerhead at the time.
On Tuesday, Mosman said it has been advised by Cue that it will not close the acquisition with Mosman as the pre-emptive right held by a subsidiary of Gale Force has been exercised.
Mosman has referred this matter to its lawyers who are currently reviewing the contractual validity of the pre-emption.
By Hannah Boland; [email protected]; @Hannaheboland
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