New Zealand and Australia-focused energy firm Mosman Oil and Gas has raised $5.1 million through a share placing to fund forthcoming exploration and appraisal programs, the firm reported Friday.
Mosman plans to increase its exploration program at the Petroleum Creek Project in New Zealand by adding potential fourth and fifth exploration wells and acquiring seismic data during the remainder of this year. The additional wells will focus on targets that have been identified by the company's consultant geologist and confirmed in an independent report undertaken by SRK Consulting (Australasia).
Meanwhile, after the firm's successful Cross Roads-1 oil discovery at Petroleum Creek in June 2014 it said that consideration is being given to appraisal work such as additional seismic data acquisition to define and delineate the discovery and adjacent prospects that may be part of the same oil accumulation.
Mosman is also considering technical changes to future well programmes based on recent information from Cross Roads-1, both to optimize exploration and facilitate well testing and to design them to be utilized as production wells once appraisal and economic studies are completed. The company is contracting engineering consultants to complete the design review and recommendations will be reviewed and implemented.
Mosman said that it has commenced negotiations with land owners to secure land access and clearances to the two additional proposed well sites, noting that good relationships with existing contractors mean existing equipment and personnel will be available to maximize its 2014 exploration program.
Meanwhile, the firm added that it is currently conducting due diligence on several potential acquisitions and that the funds raised will assist in that process. The firm also plans to bid for further permits in New Zealand's 2014 Block Offer.
Mosman Executive Chairman John W. Barr commented in a company statement:
"We are delighted with the response by investors who have strongly supported the fundraising which provides a robust financial base for the company to invest in the development of its current assets, particularly on its Petroleum Creek Project and also accelerate Mosman's strategy to broaden its portfolio of assets."
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