30th Oct 2015 08:01
LONDON (Alliance News) - Mosman Oil and Gas Ltd Friday said it has raised GBP1.5 million from US institutional investors as it continues to progress its recently acquired South Taranaki Energy Project, or STEP, in New Zealand.
Mosman said it raised the funds through placing 36.8 million new shares at 4.0 pence per share to the US institutional investors, also giving them one warrants for every two shares purchased. The warrants are exercisable within five years at a price of 5.0 pence per share.
That price is a discount to the 5.18 pence closing price on Thursday,
"We are delighted with the resounding support for the company and welcome our new investors. The new capital introduces US based funds as shareholders who have provided funding to enable us achieve our targeted production improvements on the STEP assets," said Chairman John Barr.
At the STEP project, where it is set to acquire a 70% stake in from Origin Energy Ltd in the near future, Mosman said it has now established a local office and appointed Andy Carroll as the project's chief operating officer.
Mosman has also finalised and lodged all documents that are required to gain all the necessary approvals to begin developing the project.
The company is currently looking at 12 low cost projects near STEP which will increase production "over the next few months".
Although the STEP project is a particular focus for the company right now, it already holds numerous projects across New Zealand and Australia. On Friday, it said it will conduct further geophysical work on the Murchison permit in Australia before it conducts its planned drilling programme.
A final drill decision is expected in the first quarter of 2016.
"The board has prioritised funding available to increase production at STEP, and the decision has also been made to obtain further technical information at Murchison, prior to a final drill decision," said Barr.
By Joshua Warner; [email protected]; @JoshAlliance
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