- Mosman Oil and Gas has signed an agreement regarding its proposed acquisition of up to a 70% interest in the South Taranaki Energy Project (STEP) assets in New Zealand by selling a 2% royalty to Canadian based Ridge Royalty Corp for NZ$4m.

The sale of the STEP Royalty for NZ$4 million provides funding for 40% of Mosman's purchase of the recently announced STEP Acquisition. Mosman is also actively negotiating other funding alternatives to finance the balance of up to 70% of the STEP Acquisition. The remaining 30% of the STEP Acquisition is being acquired by WRDLS Pty Ltd.

The total consideration for the STEP Acquisition is NZ$10 million (approximately £4.2 million) to be paid in two tranches following the 5% deposit which was paid by Mosman in early September.

Mosman's acquisition costs, based on 70% ownership, would be NZ$7 million (approximately £2.9 million), the first tranche being NZ$4.9m (approximately £2.1m) and the second tranche being NZ$2.1m (approximately £0.9m). As announced, Mosman intends to finance its share of the STEP Acquisition through a combination of existing cash, sale of a royalty on future production, debt, equity, and convertible securities. At 8:05am: [LON:MSMN] Mosman Oil And Gas Limited Ord Npv share price was +2.63p at 9.13p

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