Mosman Proceeds with Acquisition of South Taranaki Energy Project in NZ
Mosman Oil and Gas Limited, the New Zealand and Australia focused oil exploration and development company, provided Tuesday an update on the proposed South Taranaki Energy Project acquisition (STEP Acquisition), having concluded the following important contractual milestones:
- Origin Energy Limited (Origin) has confirmed that it is satisfied that Mosman has provided it with reasonable financial assurance and accepted Mosman's financial capacity and, as a result, the STEP Acquisition is now formally proceeding
- In addition, a new participation agreement has been signed and executed with High Peak Royalties Ltd. for HPR's acquisition of a 30 percent interest in the STEP Acquisition. The prior participation agreement with WRDLS Pty Ltd. has been cancelled
Mosman can now progress its acquisition of a 70 percent interest in the STEP Acquisition to the next stage which is to secure the required Government approvals and then move to financial completion, which is anticipated by Dec. 31. The final formal legal documents of the Company's royalty funding agreement with Ridge Royalty Corp. (STEP Royalty) are expected to be completed shortly following the contractual milestones announced today, which satisfies a key conditions precedent as set out in the announcement of Sept. 15.
The Chairman of Mosman, John W Barr, said: "We are delighted to be moving to the next stage in the STEP Acquisition process, seeking Government approvals: that will commence next week and is expected to take 60 to 90 days. At the same time detailed transition planning continues. We remain excited about this acquisition and the future prospects it offers Mosman and our partners Ridge and HPR.
"The funding Mosman obtained has been a major achievement and Mosman acknowledges the assistance of several parties who have been instrumental in completing those arrangements.
"In particular, securing the well-funded HPR as a 30 percent joint venture partner in the STEP Acquisition is significant. The new participation agreement with HPR is on the same fundamental terms and conditions as the previous WRDLS agreement and, with HPR's funding in place, it takes us a step forward to completing the STEP Acquisition. The joint owners can now proceed with confidence."
High Peak Royalties Ltd. is building a portfolio of diversified high value resource royalties around the world. In the current climate, High Peak is looking to partner with capable operators to secure high value producing assets and leverage our capital and structuring expertise.
The CEO of HPR, Simon Fyfe, said: "In partnership with Mosman we are giving investors exposure to the kinds of exciting opportunities arising while commodity prices are under pressure. The STEP Acquisition is a welcome addition to our portfolio, and satisfies our objective by creating an avenue to create an excellent, long term royalty interest derived from the production interest."
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