Mosman Oil and Gas to renegotiate South Taranaki deal

AIM-listed oil exploration and development company Mosman Oil and Gas has issued a review notice to Origin Energy to renegotiate the terms of its acquisition of the South Taranaki licence in New Zealand following Brent crude's drop to below $40 a barrel.

The company noted a provision in the sale and purchase agreement that allowed for a renegotiation of the terms if the price of Brent as quoted on the Intercontinental Exchange remained below $40 a barrel for 15 consecutive business days.

Mosman added that if there is no agreement within 30 days of the receipt of the review notice, either party has the option to terminate the SPA.

At 1400 GMT, Brent crude was down 0.3% to $37.10 a barrel.

Mosman shares were down 10% to 2.80p.