Mosman Oil & Gas hits legal obstacle in acquisition of Pine Mills

AIM listed Mosman Oil & Gas is consulting its lawyers after it was prevented from completing the acquisition of an 80% interest in the Pine Mills oil field in Wood County Texas after one of the other owners exercised a pre-emptive right over the oilfield.

Cue Energy Resources, the Australia-listed vendor, had agreed a 20-day pre-emptive rights period with the minority owners Gale Force Petroleum and Hammerhead Managing Partners if it were to sell its 80% working interest.

Cue, which is engaged in "legal issues" with Gale Force and Hammerhead, to which Mosman has been fully indemnified, told Mosman on Tuesday that it will not be able to close the acquisition as the pre-emptive right held Gale Force has been exercised.

Mosman has referred this matter to its lawyers who are "currently reviewing the contractual validity of the purported pre-emption".

The share price fell 36.65% to 1.08p at 1053 GMT on Tuesday.