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Mosman Oil And Gas increases stake in Arkoma oil project

“We are very pleased with this outcome and the continued progress on our current projects as we also continue to build and strengthen our partnerships," Barr said
oil and gas operations
The AIM oiler now has 27% of the project

Mosman Oil And Gas Ltd (LON:MSMN) shares advanced in Wednesday’s early deals after the company confirmed it is exercising its right to buy into the Arkoma oil project in Oklahoma.

Through a series of deals and amendments the company ends up with a 27% stake in the project - it started with 10%, the option exercise gave it 30%, a separate agreement saw it assign 15% to partner Blackstone, and in compensation for its recent project spending Mosman received another 2%.

WATCH: Mosman Oil & Gas ups stake in Arkoma project in Oklahoma

Chairman John Barr told investors that the deal reinforces the delivery of Mosman’s stated goal to become a production, development and exploration company.

“We are very pleased with this outcome and the continued progress on our current projects as we also continue to build and strengthen our partnerships," Barr said.

In the field, the project partners will now work to generate production and cash flow while longer term plans will be considered for the projects next stage of development.

It is expected that the project’s gross production will be between 80 and 120 barrels of oil per day, via upgraded production facilities. Longer term development would likely include additional well drilling.

Mosman has a further option to acquire up to a total of 55% of Arkoma.

In early deals, Mosman shares were up 12% changing hands at 1.1p.

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