Mosman Oil & Gas Shares Drop Amid Plans To Drilling New Wells (ALLISS)

LONDON (Alliance News) - Mosman Oil & Gas Ltd on Friday said it is proposing up to five new wells ...

Alliance News 9 November, 2018 | 10:12AM
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LONDON (Alliance News) - Mosman Oil & Gas Ltd on Friday said it is proposing up to five new wells in Texas as part of its strategic alliance with Baja Oil & Gas LLC.

The wells have been proposed for its Stanley, Challenger and Champion projects, all of which fall under the Baja alliance.

Wells Stanley-2, Stanley-3, and Stanley-4 are to be drilled at the Stanley project.

Funding for the Stanley wells includes a GBP390,000 placing, now completed. 141.8 million shares were issued as part of the placing at 0.275 pence per share.

Furthermore, two of Mosman's directors intend to subscribe for up to another GBP110,000 worth of shares and are awaiting regulatory approval to do so. If successful, Mosman will have raised GBP500,000 for its Stanley drilling projects.

Shares in Mosman were down 29% at 0.28 pence on Friday.

Mosman also intends to drill the Champion-1 and Challenger-1 wells. Wells at the Champion and Challenger projects still require funding, for which Mosman said "several alternatives are being considered".

"The selection of the proposed wells is designed to maximize the potential of Mosman and also deliver the best possible economic outcome," said Mosman Chairman John Barr.

"Mosman remains fully supportive of its other projects in the portfolio, however the low cost and strong economics of investing in these wells was a significant factor in deciding the next step for the company," Barr added.

By Anna Farley; annafarley@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Mosman Oil and Gas Ltd 0.25 GBX 2.04 -
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