Mosman Oil & Gas nabs 10% stake in Arkoma project, Oklahoma
Shares in Mosman Oil & Gas Ltd rose more than 10% after its US subsidiary, Mosman Texas LLC, executed a contract to acquire a 10% interest in the Arkoma Stacked Pay Project.
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The project was in Okfuskee County, Oklahoma. The transaction was with Inland Oil & Gas Corporation and Inland Operating Company (together, Inland) for $500,000.
Inland estimated the gross reserves and resources of the area to be 8.48 Mmboe, based on 3D seismic used to identify a significant geological structure. Wells drilled to date have demonstrated multiple reservoir horizons.
Mosman had conducted initial technical due diligence and had also commissioned an independent reserves and resource report to verify the vendor estimates.
It had also agreed the terms of two options with Inland. These were to acquire a further 20%, should it elect to do so, and, if exercised, then a further 25% of their interest in project.
Mosman would hold a total of 55% of Inland's interest if both options were exercised, and would become operator of the project.
Strategic alliance partner Blackstone Oil & Gas Inc had also agreed an option with Inland to then acquire the remaining 45% of the project.
"Blackstone has also agreed to pay Mosman a $100,000 Facilitation Fee upon completion of the Initial Transaction," said Mosman in a statement.
"Importantly Mosman also has a First Right of Refusal on any projects in the 36 square mile 3D seismic data owned by Inland, where five other targets have been identified."
At 12:57 BST, shares in AIM-quoted Mosman were up 15.79% to 1.1p each.