It has received a US$30,000 deposit and the balance will be paid within 30 days. It said proceeds raised through the sale will facilitate investment in its Stanley project and provide working capital, supporting the company whilst oil prices remain low.
Welch is producing and has development potential but Mosman noted that a prior ranking exercise determined that the Stanley and Greater Stanley projects offer “better growth”.
The field generated a gross profit of A$264,619 in the six months ended December 31, 2019.
"The intention to sell Welch was first announced in February, and the Mosman Board is pleased to have secured a buyer, notwithstanding ongoing global events,” John Barr, Mosman chairman said in a statement.
"Completing the sale of Welch remains an important milestone for Mosman in the current climate and the funds will increase Mosman's cash position to almost A$700,000 and thus enable further development at Stanley and Greater Stanley where we see strong development potential,” he added.