Mosman Oil And Gas Ltd (LON:MSMN) announced its next corporate step in a statement after Friday’s stock market close, revealing a new investment in a Canadian oil and gas producer.
The AIM quoted firm said it had invested C$380,000 in cash into Hemisphere Energy Corporation (CVE:HME), which owns producing assets in south east Alberta where output in the first quarter of this year amounted to 508 barrels oil equivalent per day.
It paid 19 Canadian cents per share in the deal, which was below the market price of 22.5 cents.
Mosman’s investment was part of a wider funding, which sees a total of 8mln shares being sold to investors, and the company will ultimately own 2.4% of Hemisphere Energy.
Cash raised by Hemisphere Energy is earmarked for investment in new drilling which aims to increase group production further.
"The investment in HME is strategic as the company is expected to be rerated from the planned drilling and the potential lift in commodity prices," said John Barr, Mosman chairman.