- Mosman Oil & Gas Ltd said US subsidiary Mosman Texas LLC has executed a contract to acquire a 10% interest in the Arkoma Stacked Pay Project in Oklahoma for a consideration of $500,000.

The stake acquisition was from Inland Oil & Gas Corp and Inland Operating Co.

Inland estimated 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.

Mosman has conducted initial technical due diligence and has commissioned an independent reserves and resource report to verify the vendor estimates.

In addition to the initial 10%, Mosman had 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.

If both options were exercised Mosman would 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. has agreed an option with Inland to then acquire Inland's remaining 45% of the Project. Blackstone has also agreed to pay Mosman a $100,000 Facilitation Fee upon completion of the Initial Transaction.

Importantly, Mosman also has a First Right of Refusal on any projects in the 36 sq mile 3D seismic data owned by Inland, where five other targets had been identified.

This transaction was the next phase of Mosman's broader strategy to build production and cash flow and other potential acquisitions continue to be examined and evaluated.

At 9:24am: [LON:MSMN] Mosman Oil And Gas Ltd share price was +0.15p at 1.1p

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