REG - Mosman Oil & Gas - £1.5m Placing to Pursue Helium Opportunities

Mosman Oil and GasAnnouncement

16/09/2024 07:00

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RNS Number : 2989E  Mosman Oil and Gas Limited  16 September 2024

 

16 September 2024

Mosman Oil and Gas Limited

("Mosman" or the "Company")

 

£1.5m Placing to Pursue Helium Expansion Opportunities

 

Mosman Oil and Gas Limited (AIM: MSMN) the helium, hydrogen and hydrocarbon
exploration, development and production company, announces that it has raised
£1.5 million (before expenses) by way of a placing and subscription of
ordinary shares of no par value (the "Fundraise").

 

Highlights

 

 ·             £1.485 million raised (before expenses) through the issue of 4,242,857,144
               new ordinary shares of no par value (the "Placing Shares") at a price of 0.035
               pence per share (the "Issue Price").

 ·             Directors Andy Carroll and Nigel Harvey will subscribe for a total of
               £15,000, being 42,857,143 new ordinary shares of no par value ("Subscription
               Shares"), at the Issue Price (the "Director Subscription"). The Director
               Subscription will be subject to disclosure as a Related Party Transaction in
               accordance with the AIM Rules for Companies and the requirements of the
               Australian Corporations Act, which includes shareholder approval. A further
               announcement will be made regarding the Director Subscription.

 

 ·             The net proceeds of the Fundraise will enable Mosman to:
               -                              Pursue and progress identified helium projects, with a view to expanding the
                                              Company's helium portfolio; and
               -                              Provide additional working capital.

 

 

Andy Carroll, Chief Executive Officer of Mosman, said: "We would like to thank
shareholders and the new institutional investors who supported this fundraise.
With a clear strategy to expand Mosman's helium portfolio, as demonstrated
with the acquisition of a 20% working interest in the Vecta Helium Project in
Colorado and the ongoing activity at both EP 145 and EP(A) 155 in Australia,
the Company has also been actively evaluating other highly prospective helium
opportunities in the US. With several potential targets identified, this
funding will enable the team to progress early-stage technical due diligence
during calendar Q4 24."

 

 

Helium Operational Update

 

Vecta Helium Project - Drilling Schedule

Mosman has been advised by Vecta Oil and Gas Ltd ("Vecta"), its partner on the
Vecta Helium Project, that it has commenced the process in order to be able to
contract rigs for drilling in October-December 2024. Mosman has a 20% interest
in five areas leased and Operated by Vecta in Colorado USA. All five drilling
locations are identified and approvals are in place.

 

EP(A) 155

Mosman has been advised by Georgina Energy plc ("Georgina") that the EP(A) 155
approval process is on track and the meeting with the Central Land Council
('CLC') took place as scheduled earlier this month. Mosman has 100% of EP(A)
155 which may reduce to 25% if Georgina meets certain farm-in conditions, and
if Mosman elects to be carried through drilling this may reduce to 10%.

 

Helium Business Development Activities

 

The Company has been actively progressing business development opportunities
in the USA that fit its search criteria of proven, shallow locations with high
helium concentrations with experienced operators.  It has entered into a
confidentiality agreement with an ASX listed experienced operator that has
leased areas in the USA that fits the Company's criteria.

 

Admission to AIM and Total Voting Rights

 

The Placing is conditional on, inter alia, the Placing Shares being admitted
to trading on AIM. Application has been made to the London Stock Exchange for
the Placing Shares, which will rank pari passu with the Company's existing
issued ordinary shares, to be admitted to trading on AIM and dealings are
expected to commence at 8:00 a.m. on or about 19 September 2024. A further
announcement will be made regarding the Director Subscription and admission of
the Subscription Shares in due course.

 

Following the issue of the Placing Shares, the Company's total voting rights
will comprise 19,494,220,074 Ordinary Shares of no par value and the Company
does not hold any shares in treasury. Consequently, the above figure may be
used by shareholders in the Company as the denominator for the calculations by
which they will determine if they are required to notify their interest in, or
a change to their interest in, the share capital of the Company in accordance
with the Companies' Articles.

 

Broker Warrants

 

The Company has granted 254,571,428 broker warrants to SP Angel Corporate
Finance LLP, exercisable at the Issue Price for a period of two years.

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this information is
now considered to be in the public domain.

 

 

Enquiries:

 Mosman Oil & Gas Limited                                             NOMAD and Joint Broker

 Andy Carroll                                                         SP Angel Corporate Finance LLP

 CEO                                                                  Stuart Gledhill / Richard Hail / Adam Cowl

 acarroll@mosmanoilandgas.com (mailto:acarroll@mosmanoilandgas.com)   +44 (0) 20 3470 0470

 Alma                                                                 Joint Broker

 Justine James / Will Merison                                         CMC Markets UK Plc

 +44 (0) 20 3405 0205                                                 Douglas Crippen

 mosman@almastrategic.com (mailto:mosman@almapr.co.uk)                +44 (0) 020 3003 8632

 

Updates on the Company's activities are regularly posted on its website:
www.mosmanoilandgas.com (http://www.mosmanoilandgas.com)

 

Notes to editors

Mosman (AIM: MSMN) is a helium, hydrogen and hydrocarbon exploration,
development, and production company with projects in the US and Australia.
Mosman's strategic objectives remain consistent: to identify opportunities
which will provide operating cash flow and have development upside, in
conjunction with progressing exploration. The Company has several projects in
the US, in addition to exploration projects in the Amadeus Basin in Central
Australia.

 

 

 

 

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