- Oil company Mosman Oil and Gas announced it has undertaken a placing to raise £400,000, the net proceeds of which will be used towards the drilling of the Falcon well at the Champion Project in Texas.

It plans to raise £400,000 through the issue of 500,000,000 new ordinary shares at a placing price of 0.08p.

The company announced that investors are also receiving one warrant to subscribe for a further new ordinary share at an exercise price of 0.15p with a term of 12 months.

Mosman said it has a 60% working interest and will pay 80% of the first well in the Champion Project under the farm-in agreement with Baja Oil and Gas.

The well has an estimated total cost of $700,000 to drill and complete, the company reported.

Chairman John W Barr said: 'This placing, along with the recent Blackstone settlement will result in Mosman having cash of over AU$1m. The pending sale of the Welch Oil Field announced on 20 May 2020 and due to complete shortly, could increase this to AU$1.4m.

'Mosman is now able to invest in several of our highest-ranked projects. Recent swift action by the board has resulted in an exceptional turnaround from the position in March 2020, when falling oil prices and the pandemic led to a severely challenging business environment.'

At 10:01am: [LON:MSMN] Mosman Oil And Gas Ltd share price was -0.05p at 0.09p

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