Mosman Oil and Gas Ltd (AIM:MSMN) has agreed to sell its interest in Nadsoilco LLC, which holds a collection of oil assets in Texas, for up to $1.75 million. The sale includes an initial cash payment of $1 million and additional payments contingent on future production rates. Nadsoilco LLC’s working interest in the Stanley, Greater Stanley, and Winters leases in Polk County, Texas, will be acquired by RCM Tech Solutions LLC as they take over operations.
The sale proceeds will enable Mosman to focus on its helium exploration activities, specifically supporting the Vecta Helium Project in Colorado and other helium exploration and production opportunities, in addition to its remaining oil and gas interests such as at Cinnabar.
Mosman’s CEO Andy Carroll expressed satisfaction with the sale, highlighting the company’s commitment to helium exploration and its potential in various projects. The move aligns with the corporate plan to concentrate on helium opportunities, leveraging their expertise in this sector garnered over many years.
The oil assets being sold generated net revenue of AU$1,603,090 (US$1,056,163) and a net profit of AU$418,876 (US$271,262) in the previous year. They were valued at AU$3,041,673 (US$2,003,945) on Mosman’s balance sheet.
Looking ahead, Mosman remains dedicated to commercializing its oil and gas assets while exploring opportunities in helium and hydrogen projects. The company aims to grow and succeed in the evolving energy landscape, capitalizing on their strategic moves and expertise in the field.
