Mosman Oil and Gas Limited Sale of Welch Project (3783K)
January 04 2021 - 1:00AM
UK Regulatory
TIDMMSMN
RNS Number : 3783K
Mosman Oil and Gas Limited
04 January 2021
4 January 2021
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Sale of Welch Project
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces that it has signed a
binding contract for the sale of the Welch Project, in Texas, for
US$420,000 (cA$553,000) in cash, with Steadfast Energy Partners,
LLC (50%) and Silver Dollar Energy Investments, LLC (50%), and the
closing is scheduled for 15 January 2021.
Whilst the Welch oil field is producing, the ranking of projects
in the Strategic Review prioritised assets with lower operating
costs including the projects in East Texas. The sale will result in
a surplus over current carrying value of US$84,000 (cA$110,000) and
the capital realised from the sale will facilitate investment in
these target growth areas. The Welch Project contributed a gross
profit of A$228,000 in the year to 30 June 2020 and the carrying
value of the Welch Project as at 30 June 2020 was A$500,000.
John W Barr, Chairman of Mosman commented : "The intention to
sell Welch was first announced in February 2020, and a sale
contract was signed in March, however despite time extensions, the
counter-party did not complete that sale contract. We are pleased
to have secured a new sale agreement at a 40% premium.
"Welch was a valuable stepping-stone for Mosman in terms of
experience and building a production base in the US while we built
a position in East Texas. The sale of Welch will enable management
to focus on further development of the projects where we see strong
near-term development potential."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Enquiries:
Mosman Oil & Gas Limited NOMAD and Joint Broker
John W Barr, Executive Chairman SP Angel Corporate Finance LLP
Andy Carroll, Technical Director Stuart Gledhill / Richard Hail
jwbarr@mosmanoilandgas.com / Adam Cowl
acarroll@mosmanoilandgas.com +44 (0) 20 3470 0470
Alma PR Joint Broker
Justine James Monecor (London) Ltd trading as
+44 (0) 20 3405 0205 ETX Capital
+44 (0) 7525 324431 Thomas Smith
mosman@almapr.co.uk +44 (0) 20 7392 1432
Updates on the Company's activities are regularly posted on its
website: www.mosmanoilandgas.com
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