Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Mosman extremely disappointed as oil slide ends STEP deal

STEP no longer met its investment criteria at current oil and gas prices,Mosman said.
Mosman extremely disappointed as oil slide ends STEP deal
Mosman issued a Review Notice on the deal in January after the Brent oil price dropped

Mosman Oil’s (LON:MSMN) acquisition of the South Taranaki Energy Project (STEP) in New Zealand from Origin Energy has been called off. 

STEP no longer met its investment criteria at current oil and gas prices, Mosman said.

Origin has agreed to repay the deposit of NZ$500,000 which will be transferred back to Mosman shortly.

The joint venture arrangement with High Peak Royalties Limited will be terminated; and the Ridge Royalty Limited royalty agreement will not proceed.

Mosman issued a Review Notice on the deal in January after the Brent oil price dropped below US$40 per barrel. 

John W Barr, Mosman’s executive chairman, said after months of work it was extremely disappointing that the state of the global economy and specifically the oil price has led to this outcome.  

Mosman added it remains in a sound financial position with in excess of A$5mln in current assets and a portfolio of exploration projects but, given the current oil and gas price, the board has decided to review all budgets and work programmes. 

Shares fell 44% to 1.33p.

PhilW.jpg
Why Invest In Mosman Oil And Gas Ltd? Read More Here

Register here to be notified of future MSMN Company articles
View full MSMN profile

Mosman Oil And Gas Ltd Timeline

Newswire
May 24 2016
Newswire
February 18 2016

Related Articles

platform_and_tanker,_sized.png
October 09 2015
The recent fundraising "paves the way for the company to make material progress across its asset base", according to the City broker Peel Hunt.
onshore oil operation
June 30 2016
East Ghazalat was seen an opening transaction into a new Egyptian business.
shutterstock_234483637_56a25c7b5c7b5.jpg
January 22 2016
San Leon is handling the financing for the acquisition of Mart Resources, and it will get a 9.75% stake in the OML 18 operations which produced 30,000 bopd and is ramping up.

© Proactive Investors 2016

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.