Rns out20 May 2020 08:08
That will stop rumours of a placing, well done board
Mosman Oil and Gas Limited Sale of Welch Project
Source: UK Regulatory (RNS & others)
TIDMMSMN
RNS Number : 4593N
Mosman Oil and Gas Limited
20 May 2020
20 May 2020
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Sale of Welch Project
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, announces it has agreed the sale of the Welch Project in Texas for US$300,000.
Sale of Welch Oil Field
Mosman has today entered into a Contract for the sale of Welch with the US based Eagle Natural Resources LLC for US$300,000 (cA$460,000).
A deposit of US$30,000 has been received, and the sale will be effective on receipt of the balance of the funds which is expected to take place within 30 days.
Whilst the Welch oil field is producing and has development potential, the ranking of projects in the Strategic Review identified better growth assets at Stanley and Greater Stanley. The capital from the sale of Welch will facilitate investment in these growth areas, as well as providing working capital at a time when cash flow is adversely affected by the low oil price.
The gross profit from operations at Welch project for the six months ending 31 December 2019 was A$264,619. In the 30 June 2019 Financial year Welch recorded a Gross Profit of A$166,229
and the carrying value of Welch at 31 December 2019 was A$500,000.
John W Barr, Chairman of Mosman commented : "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.
"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.
"The Board remains determined to deliver value to shareholders
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