Mosman Oil & Gas to buy a 50% stake in Texas oil project

Mosman Oil & Gas is to buy a 50% stake in the Strawn oil project in the US for $75,000.

The other 50% of the project in Young County, Texas has been bought by Mosman’s joint venture partner Blackstone Oil & Gas.

Mosman, which will be the operator of the project, will start maintenance and workovers programmes to increase the rate of oil production which is currently about five barrels per day. It previously produced over 600 barrels of oil per day.

The project consists of 27 existing wells most of which are not currently in production due to weak oil prices and historic low levels of maintenance - six are currently producing.

About $150,000, which will be split with Blackstone, will be spent in the next six months on maintenance and site workover plan.

The acquisition is part of the company’s growth strategy with other potential acquisitions in the pipeline.

Mosman chairman John W Barr said: "This acquisition is one of a number that Mosman has reviewed and continues to review and negotiate. These additional potential acquisitions are not geographically or scale limited, and have independent sellers although remain subject to ongoing diligence by Mosman, and contract and regulatory approvals, as appropriate.”

Shares in Mosman Oil & Gas were up 3.76% to 0.856p at 0859 BST.