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Mosman Oil and Gas earmarks £500,000 of new funds for evaluation of new opportunities

The junior oil firm is issuing a total of 45.45mln new shares at 1.1p each
oil and gas operations
It comes after a detailed project update earlier this year

Mosman Oil And Gas Limited (LON:MSMN) has raised £500,000 in working capital through the issue of new shares in a placing.

The junior oil firm is issuing a total of 45.45mln new shares at a price of 1.1p each. In late afternoon trading, the shares were traded at that issue price, down 21% on last night's close, albeit with the stock having gained strongly this week following bullish updates.

According to Mosman, the funds will be put towards its evaluation of new acquisition opportunities and general purposes.

Earlier this week, the company gave investors a detailed project update for its US operations – including the news that it is generating positive cash flows at the Welch project in Texas, where it produced a total of 3,558 barrels of oil in the four months to January.

The first phase of workovers at Welch has established production of up to 40 barrels per day. An investment decision on a horizontal drilling programme will be taken later this year after a reserves report.

 -- Adds share price --

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Mosman Oil And Gas Timeline

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