The oil exploration, development and production company said it came to the decision after a meeting between its directors and the operator, Inland, and the other owner, Blackstone Oil and Gas.
“Discussions continue with Inland and Blackstone on how to optimise the production,” Mosman said in a statement on Friday. “However, given the more attractive alternatives for capital investment Mosman has not exercised the second option and this option will now lapse.”
Earlier this month, Mosman signed a new strategic alliance agreement with Baja Oil and Gas LLC, and, announced the acquisition of stakes in two new opportunities.
Shares in Mosman were 5% up at 53p in mid-afternoon trade.