Mosman Oil and Gas Limited (LON:MSMN) has raised £900,000 of new capital which it plans to use for new drilling at the Champion project in Texas.
Proceeds are earmarked for the drilling of the Galaxie well along with the installation of production facilities for the Falcon well.
It is issuing 720mln new shares priced at 0.125p each through a share placing arranged by its broker ETX Capital. Investors taking shares in the placing also receive one-for-two share warrants with a two-year term and an exercise price of 0.25p.
Mosman also noted that it will use some of the proceeds to acquire working interest in another project in east Texas that has been under review for some time.
"I am very encouraged by the successful drilling at the Falcon-1 well and look forward to getting that well on production soon,” said John Barr, Mosman chairman in a statement.
"The Falcon-1 well result confirmed the significant potential in the Champion Project area and I am pleased to have secured funding to drill the Galaxie-1 well on a structure which is mapping indicates is even larger than Falcon.”
Barr added: "Mosman is determined to achieve its goals and objectives, highlighted by the activity in the 2020 calendar year, where we have already participated in new wells and workovers, drilled the recent Falcon-1 well, and now the proposed drilling at the Galaxie well continues that progress."