Mosman Oil & Gas said Cue Energy Resources has advised that it will not close the acquisition with Mosman as the pre-emptive right held by a subsidiary of Gale Force has been exercised.
Mosman has referred the matter to its lawyers.
On 9 November 2016, Mosman announced the proposed acquisition of an 80% interest in the Pine Mills producing oil field located in Wood County, Texas, USA together with the acquisition of Buccaneer Operating LLC, the operating company for the Pine Mills oil field ("Buccaneer" or the "Operator"), 12 acres of freehold land and a workover rig (collectively the "Asset" or "Acquisition") from Cue Energy Resources Limited (ASX:CUE) ("Cue").
The 9 November announcement noted the following points:
- There is a 20 day pre-emptive rights period that commences when the Vendor gives notice to Gale Force Petroleum Inc. ("Gale Force") and Hammerhead Managing Partners, LLC ("Hammerhead") that it is selling 80% working interest. Following Settlement, Mosman will have a pre-emptive right if there is any subsequent sale of any of the other 20 per cent.
- The Acquisition is conditional on standard settlement issues that include a 20 day pre-emptive rights period, joint venture approvals as required, and verification of certain Vendor due diligence information identified by Mosman's due diligence it has undertaken to date.
- There are currently legal issues between Gale Force and Hammerhead, and Mosman has been fully indemnified in regard to that, and any residual matters related to the Vendor's ownership of the 80% working interest.
At 9:44am: (LON:MSMN) Mosman Oil And Gas Ltd share price was -0.63p at 1.08p