AIM listed Mosman Oil and Gas has closed an acquisition of initial 10% interest in the Arkoma Stacked Pay Project in Okfuskee County, Oklahoma.
The deal for the part in the unconventional oil and gas play went through for a consideration of $500,000.
Mosman holds two options to acquire a further 20% of the Project in October 2017 and 25% in March 2018.
In addition, Mosman’s Strategic Alliance Partner Blackstone Oil & Gas, Inc. has also fully executed an option to acquire 45% of the Project.
Inland estimates the gross reserves and resources of the area to be 8.48 Mmboe, based on 3D seismic.
Mosman has commissioned an independent reserves and resource report to verify the vendor estimates, the results of which will be announced once complete.
John W Barr, chairman, said: “This acquisition delivers production and resources with upside potential at an economically acceptable cost, meeting our investment criteria and enabling us to take a further step in delivering on our strategy to build production and cash flow.
“Completing the Arkoma Stacked Pay Acquisition in Oklahoma means work on the independent resource report can now commence. We look forward to further developments onsite as an additional two wells are shortly being brought onto production. In parallel Mosman is also continuing to review other opportunities.”