(Alliance News) – Mosman Oil & Gas Ltd on Monday announced plans to sell its stake in Nadsoilco LLC and related oil assets.
The US and Australia-focused natural resources company is expected to receive $1.8 million from the sale of its 13% stake, subject to completion of due diligence by the acquirer .
Nadsoilco has interests in a number of U.S. projects, including Stanley and Greater Stanley, as well as all of Mosman’s interests in the Winters claims in Polk County, Texas.
One million USD will be paid in cash at the end of the operation on September 3, and three further payments of 250,000 USD will be made within ten days after the end of June, from 2025 to 2027.
However, these latest payments are dependent on the assets achieving an average gross production rate above 250 barrels of oil per day.
Although this rate is higher than the current rate of production, assets have achieved higher rates in the past. Each payment may be reduced by a portion of the abandonment cost expenses during this period, if necessary.
Andy Carroll, Managing Director, said: “We are pleased to realize our objective of commercializing part of our existing portfolio of oil and gas assets through sale, as we seek to capitalize on attractive opportunities for exploration. helium.
“We see great potential in helium, as demonstrated by our commitment and progress on the EP 145 project in Australia and the newly acquired interest in the Vecta helium project.
Mosman shares rose 12% to 0.038 pence each in London on Monday afternoon.
By Elijah Dale, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All rights reserved.
