Business
Arkoma Stacked Pay Acquisition
Arkoma Stacked Pay Acquisition.
About this update from Quantum Helium Limited
[{"type":"text","content":"\n \nRNS Number : 9320F Mosman Oil and Gas Limited 23 May 2017 \n\n \n23 May 2017\n \nMosman Oil and Gas Limited\n(\"Mosman\" or the \"Company\")\n \n \nArkoma Stacked Pay Acquisition\n \n \nMosman Oil and Gas Limited (AIM:MSMN) the oil exploration, development and production company, announces its wholly owned US subsidiary Mosman Texas LLC has executed a contract to acquire a 10% interest in the Arkoma Stacked Pay Project (\"The Project\"), located in Okfuskee County, Oklahoma, from Inland Oil & Gas Corporation and Inland Operating Company (collectively \"Inland\" or \"the Vendor\") for a consideration of USD$500,000, (\"Initial Transaction\").\n \nInland estimates the gross reserves and resources of the area to be 8.48 Mmboe, based on 3D seismic which was used to identify a significant geological structure and the wells drilled to date have demonstrated multiple reservoir horizons (\"Stacked Pay Project\"). Mosman has conducted initial technical due diligence and has commissioned an independent reserves and resource report to verify the vendor estimates. \n \nIn addition to the Initial Transaction of 10%, Mosman has also agreed the terms of two options with Inland: to acquire a further 20%, should it elect to do so, and if exercised then a further 25% of their interest in Project. \n \nIf both options are exercised Mosman will hold a total of 55% of Inland's interest and at this stage would become Operator of the Project. Mosman's Strategic Alliance Partner, Blackstone Oil & Gas, Inc. (\"Blackstone\") has agreed an option with Inland to then acquire Inland's remaining 45% of the Project. Blackstone has also agreed to pay Mosman a USD$100,000 Facilitation Fee upon completion of the Initial Transaction.\n \nImportantly Mosman also has a First Right of Refusal on any projects in the 36 square mile 3D seismic data owned by Inland, where five other targets have been identified.\n \nThis transaction is the next phase of Mosman's broader strategy to build production and cash flow and other potential acquisitions continue to be examined and evaluated.\n \nDetails of the Arkoma Stacked Pay Project \n \nThe Project is located in Okfuskee County, Oklahoma and covers an area of approximately 400 acres. \n \nA 3D seismic survey over a larger area led ...