Mosman, the New Zealand and Australia focussed oil exploration and development company, has raised £1.5 million to progress the acquisition of a proposed 70% interest in the South Taranaki Energy Project (STEP) assets in New Zealand.
The share issue, will be combined with the NZ$4 million (approximately £1.68 million) royalty funding announced last week and the 5% deposit paid by Mosman that was announced September 3.
The total cash consideration for 100% of the STEP assets is NZ$10 million (approximately £4.2 million) to be paid in two tranches.
The cost to Mosman, based on 70% of the STEP Acquisition, will be NZ$7 million (approximately £2.9 million) with the first tranche payable at completion being NZ$4.9m (approximately £2.1m) and a second tranche payable six months following completion being NZ$2.1m (approximately £0.9m).
Completion is conditional upon a number of conditions precedent, including Mosman and its 30% partner providing reasonable financing assurance to Origin Energy by September 30.
Chairman John Barr, said: “We have been able to reach a major milestone in being able to fund a 70% interest in the STEP assets, a producing and cash flow generating project with significant upside potential. We are excited about this fantastic acquisition and the future prospects it offers Mosman.”