Mosman Oil and Gas Divests Texas Oil Assets
Mosman Oil and Gas Divests Texas Oil Assets

Mosman Oil and Gas Divests Texas Oil Assets

  • 11-Jun-2024 5:39 PM
  • Journalist: Harold Finch

Mosman Oil and Gas Ltd (AIM:MSMN) has reached an agreement to sell its stake in Nadsoilco LLC, which holds a portfolio of oil assets in Texas, in a transaction valued at up to $1.75 million. The sale comprises an initial cash payment of $1 million and potential additional payments of up to $750,000, contingent upon future production rates. Nadsoilco LLC possesses the operational interest in the Stanley, Greater Stanley, and Winters leases situated in Polk County, Texas. The purchaser, RCM Tech Solutions LLC, will assume control of these leases.

The proceeds from the sale will enable Mosman to focus on its helium exploration endeavors. Specifically, the funds will support the company's ventures in the Vecta Helium Project in Colorado and other helium exploration and production opportunities, in addition to its remaining oil and gas interests, particularly at Cinnabar.

"We are pleased to fulfill our objective of commercializing a portion of our existing oil and gas asset portfolio through a sale as we aim to capitalize on compelling helium exploration prospects," stated chief executive Andy Carroll.

"We recognize significant potential in helium, evident in our commitment and progress at EP 145 in Australia and the recently acquired interest in the Vecta Helium Project in the USA, owing to the confirmed presence of helium and the cost-effectiveness of shallow exploration and production wells," Carroll added. "This sale underscores our dedication to executing the corporate strategy of prioritizing helium opportunities, leveraging our expertise in helium exploration garnered over several years in Australia to identify high-quality helium projects. Looking forward, Mosman will continue to monetize its oil and gas assets and explore opportunities in the helium and hydrogen sectors."

Mosman highlighted that the divested assets generated net revenue of AU$1,603,090 (US$1,056,163) and a net profit of AU$418,876 (US$271,262) last year. On Mosman's balance sheet, these assets were valued at AU$3,041,673 (US$2,003,945).

Mosman Oil and Gas Ltd functions as an oil exploration, development, and production company, engaging in activities across both the United States and Australia. The company maintains consistent strategic goals: to pinpoint prospects that generate operational cash flow while offering developmental potential, alongside advancing exploration efforts within its existing permits. Mosman oversees multiple projects in the US and is engaged in exploration activities within the Amadeus Basin located in Central Australia. Mosman operates within politically stable nations and pursues a strategy of expansion through both organic growth, involving the exploration of existing permits, and strategic growth, encompassing the acquisition of new permits, mergers, or takeovers. The company's strategic goal remains focused on identifying opportunities that generate operational cash flow and offer development potential, while concurrently exploring existing exploration permits.

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