Mosman Oil Gas Share News (MSMN)

LONDON (Alliance News) - Mosman Oil & Gas Ltd said on Friday that payments have been made by the company and Blackstone Oil and Gas Ltd for the Arkoma Stacked Pay project, Oklahoma, leading to Mosman's interest in the project increasing to 27%.

As a result, the operator will install high-volume electrical submersible pumps and infrastructure upgrades to accommodate the expected increase in oil and water production volumes.

Discussions are now underway for the second option, in which Mosman can acquire up to 55% in Arkoma by March 27.

"We have achieved our initial objective in respect to increasing our interest in the attractive Arkoma stacked pay producing asset to 27% based on due diligence, sound data and technical analysis. We have also funded operational upgrades at Arkoma that are expected to lead to increased oil production and cash flow," said Chairman John Barr.

"The strategy of acquiring oil production assets when oil prices were low is proving to be sound given recent oil price increases. We are benefiting from the decisions taken and the excellent technical work done to increase oil production and look forward to building further our production base and cash flow in the USA," Barr added.

Shares in Mosman Oil and Gas were up 9.0% at 0.899 pence on Friday.