Mosman Oil & Gas Ltd on Monday announced plans to sell its interest in Nadsoilco LLC and its related oil assets.
The US and Australia-focused natural resource development company is set to receive $1.8 million from the sale of its 13% interest, subject to the completion of due diligence by the acquirer.
Nadsoilco owns the working interest in a number of US projects including Stanley, Greater Stanley alongside all of Mosman’s interests in the Winters leases in Polk County, Texas.
$1.0 million will be paid in cash upon completion on September 3, with three further cash payments of $250,000 due within ten days of the end of June from 2025 to 2027.
However, these later instalments are dependent on the assets achieving an average gross production rate in excess of 250 barrels of oil per day.
Whilst this rate is higher than the current production rate, the assets have achieved greater rates in the past. Each payments may be reduced by a portion of expenditure on abandonment costs in that period if necessary.
Chief Executive Officer Andy Carroll said: ‘We are pleased to deliver on our goal of commercialising some of our existing portfolio of oil and gas assets by sale as we seek to take advantage of compelling opportunities for helium exploration.
‘We see great potential in helium, as demonstrated with our commitment and progress at EP 145 in Australia and the newly acquired interest in the Vecta helium project.’
Mosman shares were up 12% to 0.038 pence each in London on Monday afternoon.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
