Join our daily newsletter At The Bell to receive exclusive market insights
- Black Mountain Energy (ASX:BME) is selling its Half Moon prospect in the US Permian Basin for $10.7 million
- BME bought the well in January for $3 million
- This deal marks a 100 per cent return on investment in less than 8 months
- The company will use the funds to focus on its Valhalla project in Western Australia
- Shares last traded at 2.1 cents
Black Mountain Energy (ASX: BME) has mutually agreed to extend the due diligence period by a further two weeks in regard to the sale of its Half Moon prospect.
Just weeks ago, BME announced its decision to sell the prospect in the Permian Basin of the USA to Tap Rock Resources III for $10.7 million.
Tap Rock will control 100 per cent of the acreage rights from BME’s wholly-owned subsidiary, Seven Rivers Operating.
The purchaser will take off the Manzano MIA 64 FEE 2H well, while Black Mountain will retain its interest in the 8 Morrow wells which are both proven and developed.
Half Moon has been sold off only 8 months after the asset was purchased back in January for $3 million. This deal represents a return on investment of 100 per cent in less than 8 months.
“A return on investment of 100 per cent in less than eight months is both a tremendously quick and strong outcome for the company,” BME Executive Chair Rhett Bennett said.
Funds will be used to progress the company’s flagship Valhalla project in the Canning Basin of WA, which has the potential to be an incredibly large resource.
BME shares last traded at 2.1 cents.
