2nd Jul 2020 11:54
(Alliance News) - Mosman Oil & Gas Ltd on Thursday said it has raised GBP400,000 through its issue of 500.0 million shares at a price of 0.08 pence each in order to fund its Falcon well.
Shares in Mosman were down 42% at 0.081 pence in London shortly before midday.
The Australia-based oil exploration, development, and production company said it will use the placing proceeds to help fund the drilling of the Falcon well at the Champion project in Texas.
Mosman has a 60% working interest in Champion under its farm-in agreement with Baja Oil & Gas LLC and will pay 80% of the first well.
Baja, meanwhile, has a 30% interest and will pay 10% of well cost while Contour Exploration and Production LLC - owned by Mosman's US manager Howard McLaughlin - also has 10% of the lease and will pay the final 10% of the well cost.
Investors in the placing will also receive warrants to subscribe for further shares with a 0.15p per share exercise price and a 12 month term.
In combination with the USD107,500 paid to Mosman by Blackstone Oil & Gas Inc as part of a settlement, Mosman will have more than AUD1.0 million or around GBP550,000 in cash.
Chair John Barr said: "We expect to shortly complete planning, start preparation of the Falcon wellsite in July, spud the well in August, and announce results a few weeks later.
"In addition to Falcon activity, the workover of the Stanley-1 well is now underway and should be completed next week. The workover at Greater Stanley awaits approvals by the relevant authorities."
Barr also highlighted news from the Stanley operator that drilling of Stanley-1 is now expected to take place in August.
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Mosman Oil & Gas