LONDON (Alliance News) - Mosman Oil and Gas Ltd Thursday said it has raised GBP500,000 through a share placing and said it will accelerate its drilling programme at the Murchison permit in New Zealand.
The company said it raised the GBP500,000 after placing 10.0 million shares at a price of 5.0 pence per share, and will use the proceeds to accelerate its programme on the Murchison permit and for exploration activities in the Amadeus Basin in Australia.
"We are delighted with the ongoing support from our shareholders that will allow us to advance the range of carefully planned activities we currently have underway and others that we expect to make progress on in the current year across our portfolio of assets," said Executive Chairman John Barr.
Mosman is accelerating the Murchison permit because the potential for oil has been reinforced by recent additional technical work conducted by the company's technical team. Mosman has now engaged with SRK Consulting (Austalasia) Pty Ltd to conduct an independent review of the project which will allow the company to select targets on the permit.
Planning has commenced on all aspects of drilling, and approvals will be sought from the landowners and relevant authorities once the final well location is selected. The start of site work and drilling of the first well is scheduled for mid-2015, it said.
In addition, the company said the next phase of well testing at Petroleum Creek, also in New Zealand, will determine maximum reservoir flow and definitive reservoir fluid composition of oil and/or water, so pump rates will be increased in the next phase of flow testing scheduled to commence after Easter.
"We are making good progress on the initial stage of flow testing at Petroleum Creek and will now step up pump rates to determine reservoir flow and reservoir fluid composition," said Barr.
Mosman said the flow test on Petroleum Creek will allow it to define targets and to better understand the reservoir characteristics.
Technical work continues on the Taramakau project in New Zealand and discussions with regard to a potential farm-in at the Taramakau permit remain ongoing.
Mosman is also "progressing well" with its takeover for MEO Australia Ltd. The company said it has now served all the required documents, and said it has received acceptances from MEO shareholders for 12.5 million shares, which represents 1.65% of MEO's issued share capital.
MEO shareholders have until May 8 to consider Mosman's offer and the company said it "remains confident that the combination of Mosman and MEO will make a strong, well-funded company."
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Mosman Oil Gas (MSMN)