Business
Champion drilling, fundraising and Stanley update
Champion drilling, fundraising and Stanley update.
About this update from Quantum Helium Limited
[{"type":"text","content":"\n \nRNS Number : 9340Y Mosman Oil and Gas Limited 14 May 2019 \n\n14 May 2019\n \nMosman Oil and Gas Limited\n(\"Mosman\" or the \"Company\")\n \n \nChampion drilling, fundraising and Stanley project update\n \nMosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, is pleased to provide an update on it US projects Champion and Stanley and announces a Placing to raise £750,000 (the \"Fundraising\").\n \nAs part of the ongoing development programme, Mosman has agreed with its joint venture partners to commence drilling at two wells at the Champion project following evaluation of the 3D seismic. These two wells are expected to further increase Mosman's production and revenues, following the recent growth in the Group's production (as announced on 24 April 2019). \n \nIn addition, Mosman is pleased to provide an update on progress on the Stanley Project. \n \nDetails of the Fundraising \n \nTo fund the drilling at Champion, the Company has raised £750,000 (before expenses) by way of a placing of 250,000,000 new ordinary shares of no par value in the capital of the Company (\"Placing Shares\") at 0.3p per share.\n \nUse of Proceeds\n \nThe major proposed use of proceeds for the Fundraising will be to fund Mosman's share of drilling costs for the proposed drilling of the Champion Project, containing the Falcon prospect (\"Falcon\") and the Galaxie prospect (\"Galaxie\"). \n \nFollowing the recent farm in to the Champion project by Xstate Resources Limited, it is expected that Mosman will hold a 35% working interest in the two Champion wells.\n \nThe first well is expected to be drilled in the third quarter of 2019 and Mosman's contribution to each well is expected to be approximately £235,000.\n \nIn addition, there are a number of other matters under consideration, including:\n1. Baja, Mosman's strategic partner, has identified low cost opportunites to increase working interest in existing areas and extend existing leases. The capital raised may also be used to fund those type of \"bolt-on\" acquisitions;\n2. At Welch, consideration is being given to further workovers to further increase production levels; and\n3. Costs associated with preparing for the seismic work required at the Amadeus Bas...