News Column

Mosman Oil & Gas Issues Shares To Buy Australian Oil Explorer Trident

July 2, 2014

Tom McIvor

LONDON (Alliance News) - Mosman Oil & Gas Ltd Wednesday said it has entered a deal to buy Australian onshore and offshore oil company Trident Energy Ltd for USD1.6 million in shares along with a cash loan.

The New Zealand and Australia-focused oil exploration and development company said the deal, which should complement and expand its regional exploration portfolio, will be paid for in three tranches.

The company said it firstly will issue 2.9 million shares in Mosman to acquire Trident's equity, before settling Trident's outstanding loans, directors fees and creditors payments by the issue of up to 2.5 million further shares.

Mosman said it has also agreed to provide a loan payment of up to AUD750,000 to Trident,

Trident has three exploration assets on the highly prospective Canning, Amadeus and Otway basins, with exposure to both conventional and unconventional oil and gas opportunities.

Mosman added that the takeover offer, which includes certain conditions including Mosman completing an equity capital raising of at least AUD2 million, has been unanimously recommended by Trident's board.

"The Trident acquisition complements Mosman's existing Petroleum Creek and Officer Basin projects, ensuring that Mosman has a diversified asset portfolio in five prospective hydrocarbon regions," Executive Chairman John Barr said in a statement.

"Exploration of the 5 permits is fully funded and we believe the enlarged portfolio will deliver operational activity and exploration milestones in the coming months and years," Barr added.

Mosman Oil & Gas shares were up 7.1% to 24.10 pence, putting it amongst the top AIM All-Share risers during early trading on Wednesday.

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Source: Alliance News

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