Mosman Oil and Gas Ltd (AIM: MSMN) has announced the sale of its interest in Nadsoilco LLC, which owns a collection of oil assets in Texas, in a deal valued at up to $1.75 million.
The transaction includes an initial cash payment of $1 million, with potential additional payments of up to $750,000, contingent on future production rates.
Nadsoilco LLC holds the working interest in the Stanley, Greater Stanley, and Winters leases in Polk County, Texas. The buyer, RCM Tech Solutions LLC, will take over the operations of these leases.
The proceeds from the sale will enable Mosman to focus on its helium exploration activities, particularly supporting the Vecta Helium Project in Colorado and other helium exploration and production opportunities, along with its remaining oil and gas interests, notably at Cinnabar.
“We are pleased to deliver on our goal of commercialising some of our existing portfolio of oil and gas assets by sale as we seek to take advantage of compelling opportunities for helium exploration,” said chief executive Andy Carroll in a statement.
“We see great potential in helium, as demonstrated by our commitment and progress at EP 145 in Australia and the newly acquired interest in the Vecta Helium Project in the USA, due to the proven presence of helium and the low cost of shallow exploration and production wells.”
Carroll added: “This sale underscores our commitment to focusing on helium opportunities, where we can leverage our helium exploration expertise gained over several years in Australia to identify quality helium projects.
“Looking ahead, Mosman will continue to commercialise its oil and gas assets and seek opportunities for helium and hydrogen projects.”
Mosman noted that the sold assets generated net revenue of AU$1,603,090 (US$1,056,163) and a net profit of AU$418,876 (US$271,262) last year. On Mosman’s balance sheet, they had an asset valuation of AU$3,041,673 (US$2,003,945).
