Mosman Oil and Gas announce acquisition of Trident Energy Limited
Mosman Oil and Gas Limited (AIM: MSMN), the New Zealand and Australia focussed oil exploration and development company, has entered into a binding Bid Implementation Agreement (“BIA”) pursuant to which it is proposing to acquire all of the issued shares in Trident Energy Limited (“Trident”), an Australian unlisted public company with onshore and offshore oil interests in Australia (“Acquisition”).
· The Acquisition will complement and expand Mosman’s regional exploration portfolio.
· Trident has three exploration assets located in the highly prospective Canning, Amadeus and Otway basins, providing Mosman with exposure to both conventional and unconventional oil and gas opportunities:
– VIC/P62 in the Otway Basin
– EPA 145 in the Amadeus Basin
– EP 478 in the Canning Basin
· The total consideration comprises circa £1.6m (based on the current share price of 23p and an exchange rate of £1:A$1.813) payable in three tranches:
– The issue of 2,892,978 Mosman Shares to acquire 100% of the issued share capital of Trident
– Settlement of outstanding loans and directors’ fees by the issue of 2,147,427 Ordinary Shares (the “Loan Shares”)
– Settlement of outstanding creditors by the issue of up to 308,113 Ordinary Shares (the “Creditor Shares”) and
– An agreement to provide a loan of up to A$750,000 to Trident
· The Mosman board believes this represents a low entry price for a portfolio of three permits in these highly sought after locations, increasing the portfolio from two to five permits with minimal dilution
John W Barr, Executive Chairman of Mosman commented: “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.
“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.
“As we stated at IPO in March, Mosman’s strategy is to develop the business organically and by acquisition, which we are delivering both in only four months since IPO, having achieved the recent oil discovery at Cross Roads-1 and now our first acquisition.”
TRIDENT EXPLORATION ASSETS
VIC/P62 -Otway Basin, Victoria (30%)
VIC/P62 is a large 4,630 sq. km permit in shallow water (50- 90m) in the Otway Basin. Loyz Energy Limited (a company listed on the Catalist Exchange of the Singapore Stock Exchange) has a 70% interest and funded a 3D seismic survey in 2013 at a cost of in excess of A$4.5 million.
Mosman has had all the data reviewed by SRK Consulting (Australasia) Pty Ltd and is encouraged by their identification of multiple possible drilling targets.
Within the Otway Basin there is commercial production both onshore and offshore.
VIC /P62 is currently being renewed and the Acquisition is subject to that process being completed.
EPA 145: Amadeus Basin, Northern Territory (100%)
EPA 145 is an application for a permit in the Amadeus Basin in the Northern Territory of Australia. Grant of EPA 145 is currently pending signature by the Minister and that is a condition of the Acquisition. A deed for exploration between Trident and the Central Land Council (CLC) for native title matters has been successfully negotiated and executed.
The Amadeus Basin comprises 170,000 sq km and is one of Australia’s least explored basins, which contains two producing fields, Mereenie Oil and Gas field and the Palm Valley Gas field. Recently, Central Petroleum has developed the Surprise Oil Field, demonstrating oil as well as gas in the area.
EPA 145 is close to existing infrastructure, and the permit area contains the West Walker-1 Discovery which flowed 3.5 mmcfd gas, with composition similar to the Mereenie oil field.
EP478 – Canning Basin, WA
The EP478 permit is located in the Canning Basin of Western Australia. The permit covers a large structure on a proven petroleum system. (Looma-1: 500 million barrel tight oil discovery).
Trident has the right to farm-in to 17.5% of EP478 by funding 25% of the first well. Should Trident not elect to farm in and the well is a discovery, Trident earns 7.5% of the permit.
Apache Energy has an option to take up to a 40% in interest in EP478, subject to the exercise of Trident’s pre-emptive rights.