Mosman Oil (AIM:MSMN) has acquired 50% of the Strawn Oil Project located in Young County, Texas.
The oil exploration and development company paid a consideration of USD$75,000, with the total consideration payable of USD$150,000.
The project will be operated as a joint venture with Mosman’s Strategic Alliance Partner Blackstone Oil & Gas, Inc. acquiring the other 50%.
Mosman will act as operator and will immediately commence a detailed programme of maintenance and workovers to significantly increase the current rate of oil production.
John W Barr, Mosman chairman, said: “This acquisition is the first to conclude as part of Mosman’s growth strategy, and a number of additional projects continue to be reviewed.
“Completing the Strawn Acquisition in Texas means work on the ground can now commence, and plans for this are well advanced on the work programme which is starting immediately and we look forward to providing an update once the first phase is complete.”
The Strawn project is located in Young and Archer Counties, Texas, approximately 200 km west of Dallas.
It consists of 27 existing wells most of which are not currently in production due to oil prices and historic low levels of maintenance. Only six wells are currently producing.
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