Mosman Oil and Gas Ltd (AIM:MSMN) has updated on its operations whilst announcing a £250,000 equity raise.
The North America-focused, London-listed small-cap said it sold 2 billion new shares priced at 0.0125p, raised by broker CMC Markets.
It comes as the company’s new management decided to continue the development of the Cinnabar leases in Texas, which was described as having “significant value that can be realised with further technical work and investment”. Cinnabar is expected to be its focus area in 2024.
Meanwhile, at the Stanley project, the company has determined that higher flow rates are possible and following modifications to surface equipment it expects operations to be more reliable. It said that the system should now improve, with a target of 100 barrels per day, though noted that it is too early to provide meaningful production data.
The company said it continues to exercise cost control, with its Australian overhead costs having been reduced by approximately 40%, including savings from reducing its number of executive directors.
In Australia, Mosman's EP145 project now includes a farm-in agreement with Greenvale Gold. The venture is expected to focus on the exploration of helium, hydrogen and hydrocarbons.
Highlighting the strategy going forward, chief executive Andy Carroll commented: "The business plan for the US is to focus management time on the significant upside at Cinnabar, and monetise producing assets by cash flow or sale.
“In Australia, we look forward to the completion of the Greenvalue farm in at EP145 which will put us in the position of funding for both permit/permit application being managed by farm-in agreement."