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Mosman Oil And Gas announces deal to exit Welch oil field in Texas

The disposal proceeds will provide working capital and support plans at the Stanley oil field

Mosman Oil And Gas Ltd - Mosman Oil And Gas announces deal to exit Welch oil field

Mosman Oil And Gas Ltd (LON:MSMN) has announced a deal to sell its stake in the Welch oil field in Texas, for US$300,000.

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.

READ: Mosman says production continues at the Stanley field

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.

Quick facts: Mosman Oil And Gas Ltd

Price: 0.0884 GBX

Market: AIM
Market Cap: £996.69 k

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