Black Mountain Energy, through its wholly owned subsidiary Seven Rivers Operating, has confirmed the settlement of the sale of its MIA 64 FEE 2H well (Half Moon prospect) in the Permian basin.

Earlier this year, the Australian energy company sold its Half Moon prospect in the US Permian Basin.

Under the binding sale and purchase agreement, the company received around A$10.7m ($6.8m), for 100% of its acreage and its title and interest in the MIA 64 FEE 2H well.

The total consideration includes $5.4m for the company’s acreage position and a return of $1.4m for the Manzano MIA 64 FEE 2H well.

The transaction was subject to customary terms and conditions, including closing adjustments.

Black Mountain said that the sale of Half Moon acreage is driven by immediate cash resources to focus on the development of its core asset in Western Australia, Project Valhalla.

Black Mountain Energy executive chairman Rhett Bennett said: “This sale of the Half Moon acreage satisfies every element of our exciting short term gains strategy striking the right balance between an immediate cash boom and the future development opportunity that exists in Western Australia.

“A return on investment of 100% in less than 8 months, at the time of agreement, is both a tremendously quick and strong outcome for the Company.

“The Company will continue to seek new investment opportunities that will provide the ability to realize significant returns for shareholders.”

The Half Moon Project is located in the north-western corner of the Delaware Basin adjacent to the NW shelf, Australia’s largest resource development project.

The project has proven petroleum systems and eight acquisition wells, which have produced nearly three mmboe from the lease acreage.

Black Mountain said that the sale strategically diversifies its business model and provides non-operated production from 8 PDP late-life vertical wells located over 3,200 non-operated acres.

Also, the transaction will generate a constant monthly production revenue while the company continues to develop its Valhalla natural gas project in the Canning Basin.