Mosman acquiring Welch Permian Basin leases

Oil exploration, development and production company Mosman Oil and Gas announced on Monday that it has executed a contract to acquire several oil and gas leases that comprise the Welch Permian Basin Project in Dawson County, West Texas for a consideration of $0.31m, which would be funded from existing cash reserves.

The AIM-traded firm said its strategic objective continued to be that of identifying, acquiring and operating projects with cash flow and development upside, whilst continuing to add value to its existing exploration permits with further technical work.

It said the 34 barrels of oil per day Welch Project “exactly fit” that criteria, with near term upside from low cost workovers and medium term development potential.

“The Welch Permian Basin Project is an ideal acquisition as it meets Mosman's stated objectives, immediately doubles our oil production and has significant upside potential,” said chairman John W Barr.

“Many similar opportunities are under review and I am pleased that we are able to demonstrate the active execution of our business plan.”