Mosman Oil & Gas Raises £0.5m for future opportunities

The proceeds from the placing of 45.4m ordinary shares at 1.1p per share will also be put towards general working capital purposes.

The AIM-traded company has also granted warrants over 750,000 new ordinary shares to SP Angel in connection with the placing, exercisable at a price of two pence for a period of three years from the date of administration.

The news comes after Mosman’s Tuesday announcement that after production improvements all of its US assets had begun to generate increased cash flow.

Mosman has now established a production rate of 40 barrels per day after completing the first phase of developments at its wholly owned and operated Welch project in the Texas permain basin, and said it was gearing up to begin drilling horizontal wells which would increase reserves and production.

The company’s share prices soared after the announcement, rising over 60% on Tuesday and thus putting todays dip into perspective.

As of 1538 GMT, Mosman’s shares were down 19.64% at 1.13p.