(Alliance News) - Mosman Oil & Gas Ltd shares jumped on Thursday, after it said it has completed an evaluation on further workovers at Falcon-1 in the US, which has been shut in this year, and determined not to invest additional resources in this project.
Mosman is a Sydney-based oil and gas company, with projects in Australia and the US.
Its shares were up 27% to 0.035 pence each in London on Thursday afternoon. Over the last 12 months, the stock is down 42%.
Mosman said it has now reached an agreement to transfer the Falcon lease to 84 Energy Corp in exchange for the equipment on the lease.
This means Mosman is not liable for potential future abandonment costs estimated to be up to USD200,000.
In the year ended June 30, 2022, the Falcon lease generated AUD636,387 revenue and a gross profit of AUD286,528.
In addition, the undeveloped Galaxie exploration lease has not been renewed and has expired with no liabilities. Both Galaxie well and Falcon-1 well are in the Champion project, Texas.
Mosman's Technical Director Andy Carroll said: "Mosman's priority areas in Texas continue to be at the Cinnabar and Stanley projects, and this transaction enables the team to focus on building production at these higher value areas."
By Sophie Rose, Alliance News reporter
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Mosman Oil Gas (MSMN)