The company told investors that while the project remains a good asset with long-term potential, the acquisition no longer met Mosman’s investment criteria at current oil and gas prices.
Origin has since agreed to repay the AUD$460,000 deposit, while Mosman’s joint venture with Ridge Royalty Limited will not proceed.
Mosman Executive Chairman John W. Barr said “After months of work by the board, staff and consultants on the South Taranaki Energy Project, it is extremely disappointing that the state of the global economy and specifically the oil price has led to this outcome.
“Mosman intends to minimise expenditure to preserve cash and asset values, with the immediate priority now being to focus on our other projects and continue to evaluate new opportunities.”?
The South Taranaki Energy Project involves the Rimu Production Station and two petroleum mining permits.