Mosman Oil & Gas Ltd (LON:MSMN) shares rose on Monday following news the firm has parted ways with the first oil field it operated in the USA as it is no longer deemed a material asset.
The AIM-listed producer, which owns stakes in a number of larger projects in the US and Australia, sold the 50% stake in the Strawn production facilities and lease for US$75,000 (AU$108,500) to Eagle Natural Resources LLC.
Looking back, chairman John Barr said: “Strawn was a small but important step towards the team implementing Mosman's business plan, as it established Mosman as an operator in USA and gave valuable experience in operating mature oil fields. This led to the acquisition and operatorship of Welch, which has more development potential."
Strawn was acquired in spring 2017 for US$75,000 (approximately AU$108,500) and in the six months to 31 December contributed a net loss of just over AU$7,000.
“Now that we have even more production and development opportunities, Strawn is no longer deemed a material asset and we see more value in focussing our attention on our other projects,” Barr added.
Mosman will use the proceeds for general working capital.
In afternoon trading, shares in Mosman were 5.7% higher at 0.28p.
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