Mosman Acquires Privately-Held East Texas Oil Producer
LSE-listed Mosman Oil & Gas Ltd. has entered into an agreement to acquire 100% of the issued share capital of privately-held Nadsoilco LLC, for a total consideration of US$1.1 million, including certain deferred payments Upon completion, Mosman will take over the operatorship of Nadsoilco’s leases and associated wells in East Texas.
Under the terms of the deal, Mosman will pay the sellers an initial cash consideration of US$900,000, with a further deferred payment of US$200,000 being made over the next two years.
Nadsoilco’s assets acquired include a 20% working interest in the Stanley lease, a 20% working interest in the Livingston lease, and 23.3% interest in the Winters lease located in East Texas, with four wells in the producing Stanley project. The leases also include extensive oil and gas infrastructure including the producing wells, separators, tanks, pump jacks and a water disposal well, as well as a gas pipeline and the associated infrastructure. The company’s average daily net production stood at approximately 34.33 barrels of oil per day (bbls/d) during Q1-2021.
“The board is delighted to complete the acquisition of Nadsoilco that it has been working on for some months. This will immediately boost Mosman’s production base and cash flow, and provide multiple near-term drilling and development activity,” commented John W. Barr, Chairman of Mosman.
Headquartered in Sydney, Mosman Oil & Gas is engaged in oil & gas projects in the United States and Australia, and also owns a minority stake in the TSX-V listed Norseman Silver Inc. (formerly GEM International Resources Inc.).
The transaction is subject to normal settlement matters and registration, and is expected to close within 30 days.