REG - Mosman Oil & Gas - Placing to raise £300,000

Mosman Oil and GasAnnouncement

02/02/2024 08:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240202:nRSB8522Ba&default-theme=true

RNS Number : 8522B  Mosman Oil and Gas Limited  02 February 2024

2 February 2024

Mosman Oil and Gas Limited

("Mosman" or the "Company")

Placing to raise £300,000

Mosman Oil and Gas Limited (AIM: MSMN) the hydrocarbon, helium and hydrogen
exploration, development, and production company, announces that it has today
raised £300,000 (before expenses) by way of a placing of 2,400,000,000
ordinary shares (the "Placing").

The proceeds will be used largely for working capital including certain
expected costs to develop Mosman's two 100% owned helium and hydrogen
exploration projects in the Amadeus Basin in the Northern Territory of
Australia, EP 145 and EPA 155 ahead of farmout Completion. Mosman remains
responsible for continuing costs for EP 145, which will be subsequently
re-imbursed upon Completion of the Farmin Agreement.

Summary of Australian Exploration projects

EP 145 Funding by Farmin Agreement

 

Mosman has published a Prospective Resources estimate of 440 bcf total gas
including 26 bcf of helium and 26 bcf hydrogen.

 

Mosman Oil and Gas has signed a farmin agreement with Greenvale Gold Pty Ltd
("Greenvale") a wholly owned subsidiary of Greenvale Energy Ltd to fund
seismic and drilling on its EP 145 project in the Northern Territory of
Australia.

 

Completion of the Farmin Agreement announced in October 2023 is subject to
government approval of the proposed change of Operator and transfer of
interest. The farminee, a subsidiary of Greenvale Energy Limited (ASX:GRV),
has advised that they have received the Stamp Duty assessment and paid the
amount due. The next step is Ministerial approval, which is expected to
proceed now that stamp duty has been paid. The Company is not in control of
the timing of Ministerial approval, but based on progress so far anticipates
Completion to occur in the near future. The amended agreement clarifies that
Mosman is responsible for costs until Completion, when Mosman will be
re-imbursed for costs and paid $160,000.

 

The seismic acquisition programme is planned for the first half of 2024, with
results due and a well location announced before end of Permit Year 3 in
August 2024, followed by drilling in the following Permit Year.

 

EP(A)155 Mount Winter

 

Located in the Northern Amadeus Basin between the producing Surprise Oil Field
and Mereenie Oil and Gas Field has significant prospectivity for helium,
natural hydrogen and hydrocarbons.

 

EP(A)155 lies within the highly prospective Horn Valley Siltstone fairway with
proven hydrocarbon potential as demonstrated by historical wells, Mt Winter-1
& 1A. Exploration data comprises a 2D seismic grid and 2 wells.

 

Mt Winter-1 was drilled to a depth of 2650m reaching TD in the Proterozoic
Gillen Fm, above the helium and hydrogen prospective targets. Hydrocarbons
were encountered in 2 intervals, the Ordovician Stairway Sandstone (reservoir
at Surprise Field) and Proterozoic Jonny's Creek Beds (reservoir at Ooaramina
discovery, northeastern Amadeus Basin). The well was drilled off structure due
to the limited seismic data available, and re-interpretation of the available
data suggests valid targets at multiple depths down to and including basement.

EP(A)155 is an exploration permit application, subject to successful land
access negotiation with Traditional Owners prior to grant of the permit.
Mosman entered into a farmout agreement with Westmarket Oil and Gas Pty Ltd, a
wholly owned subsidiary of Georgina Energy ("Georgina").  Georgina is
responsible for the Native Title negotiations as required for grant of the
permit.  Georgina will also undertake the initial technical work program
which includes acquisition of seismic data to earn a 75% working interest and
operatorship of the permit. On drilling an exploration well Georgina may earn
a further 15% working interest by carrying Mosman through the cost of the
well.

Details of the Placing

 

The Company has raised £300,000 (before expenses) by way of a placing of
2,400,000,000 new ordinary shares of no-par value in the capital of the
Company ("Placing Shares") at a placing price of 0.0125p per share (the
"Placing Price"). CMC Markets UK Plc trading as CMC CapX acted as the
Company's sole placing agent in respect of the Placing.

Warrants

 

1,200,000,000 warrants have been granted by the Company on the basis of 1
warrant for every 2 Placing Shares, with an exercise price of 0.025p and
two-year expiry, issued to the Placees.

 

Additionally, 144,000,000 broker warrants have been granted to CMC Markets UK
Plc trading as CMC CapX, exercisable at the Placing Price and with a two-year
expiry.

 

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 8 February 2024.

 

Following the issue of the Placing Shares, the Company's share and total
voting rights will comprise 12,211,047,141 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.

 

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

 +44 (0) 7525 324431                                                  +44 (0) 020 3003 8632

 mosman@almastrategic.com (mailto:mosman@almapr.co.uk)

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 hydrocarbon, helium and hydrogen 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 of existing exploration permits. The
Company has several projects in the US, in addition to exploration projects in
the Amadeus Basin in Central Australia.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  IOEUUVBRSNUURRR