Mosman Oil and Gas preferred bidder in acquisition; mulling fundraising options

Mosman Oil and Gas said on Friday that it was in advanced talks regarding a potential acquisition that, if completed, would provide immediate production and cash flow.

The oil exploration and development company said the proposed acquisition would see it become the operator of an existing project containing onshore oil and gas producing fields, reserves and resources and associated processing facilities and infrastructure.

A deal had been flagged on 22 May 2015 and in subsequent announcements, with the board indicating that it was actively evaluating potential acquisition opportunities.

Mosman said that one particular opportunity on which it has completed detailed due diligence on over a three-month period has now progressed to an advanced stage, whereby Mosman has been designated as the preferred purchaser by the vendor and been granted a period of exclusivity.

The company confirmed that it was actively considering fundraising options, which may include the issue of equity, to enable it to enter into a sale and purchase agreement in respect of the acquisition and said it looks forward to providing further updates to the market.

At 15:00, Mosman shares were up 1.2% at 2.15p.