Last checked at 
LONDON (Alliance News) - Mosman Oil & Gas Ltd on Friday provided an update on the investments that were recently made in two Canadian-listed mining companies and said exploration on its existing permits is continuing whilst the company looks for further opportunities.
Mosman purchased a 20% stake in junior exploration company GEM International Resource Inc back in May, costing a total of CAD400,000, before making a separate investment in Hemisphere Energy Corp in June to take a 2.4% stake for a total of CAD380,000.
Since those investments, Executive Chairman John Barr has met "the officers" of GEM in Hong Kong to discuss planning for exploration, including bulk mining sampling, within GEM's asset portfolio.
GEM has recently entered into a binding agreement to acquire a 91.5% interest in 45% of the Dala diamond exploration project in Angola. The project is the maximum size that it is allowed to be under Angolan mining law and is 25.0 kilometres south of the world's fifth largest diamond mine, Catoca.
Mosman said GEM plans to start exploration work this month once it has completed planning and logistic work.
Hemisphere is already producing oil, pumping out around 508 barrels of oil equivalent per day from the Jenner and Atlee Buffalo areas in south-east Alberta, Canada. No update concerning that investment was published on Friday.
However, Mosman did note movements in the share price of both GEM and Hemisphere since making its investments. Mosman invested in GEM at CAD5.0 cents per share and purchased two-year options at CAD15.0 cents each - compared to GEM's current share price of CAD14.5 cents.
The investment in Hemisphere was made at CAD19.0 cents per share, and the share price has risen to CAD21.0 cents since then.
Mosman said it is continuing to look for other opportunities as it continues to grow organically through its existing projects and strategically by making more investments. The company is in a "sound financial position".
The market value of Mosman's investments, when combined with cash, stands at around AUD4.8 million. Notably, the company said it has recently made foreign exchange losses of around AUD250,000 due to the volatility of the pound, as Mosman holds cash in pounds, Australian dollars and New Zealand dollars.
Mosman said work on its existing permits has continued. At the Murchison permit in New Zealand, data from the recent survey is being collected to update the geological model before the company decides to location of the first well that will be drilled on the asset.
The company said it is still holding discussions with its partner on the Petroleum Creek and the Taramakau permit areas to try to defer existing work obligations. Mosman said it is still planning to plug and abandon the three wells drilled on Petroleum Creek in 2014, but said this will likely happen when other nearby wells are abandoned so it can save on costs.
In Australia, at the Amadeus basin permit, a contract has been awarded for a survey to be conducted over EP156. Mosman said that will cost around AUD60,000 and will start in the early part of the fourth quarter of this year.
At EP155, also in the Amadeus permit, Mosman is holding discussions with the Central Land Council and the pair plan to host an on-site meeting in September. The company is attempting to negotiate access to the permit, which includes "sacred sites".
Lastly, at EP145, the Central Land Council has given access to Mosman so it can conduct a geological study "later this year".
Mosman shares were down 3.8% to 1.01 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.