Mosman Oil and Gas Ltd (LON:MSMN) has agreed to sell its interest in the Welch project, Texas, in a cash deal worth US$420,000, after a prior deal failed to close.
The new deal is with Steadfast Energy Partners LLC and Silver Dollar Energy Investments LLC. This transaction is expected to close on January 15, 2021.
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The company pointed out that project ranking in its recent strategic review prioritised assets with lower operating costs.
"The intention to sell Welch was first announced in February 2020, and a sale contract was signed in March, however despite time extensions, the counter-party did not complete that sale contract,” said John Barr, Mosman chairman in a statement.
"Welch was a valuable stepping-stone for Mosman in terms of experience and building a production base in the US while we built a position in East Texas. The sale of Welch will enable management to focus on further development of the projects where we see strong near-term development potential," he added.