REG - Mosman Oil & Gas - EP(A) 155 and Exploration Update

Mosman Oil and GasAnnouncement

22/01/2025 07:45

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RNS Number : 2627U  Mosman Oil and Gas Limited  22 January 2025

 

22 January 2025

Mosman Oil and Gas Limited

("Mosman" or the "Company")

 

EP(A) 155 and Exploration Update

 

Mosman Oil and Gas Limited (AIM: MSMN) the helium, hydrogen and hydrocarbon
exploration, development and production company, provides a further update on
its asset portfolio.

 

 

Australia

 

EP(A) 155

As part of its focus on its US portfolio and following the proposed sale of
EP-145 for cash and a royalty, Mosman has signed an agreement with Westmarket
Capital Ltd Westmarket Oil & Gas Pty Ltd (a wholly owned subsidiary of
Georgina Energy PLC (LSE: GEX)) selling its EP(A) 155 rights for AU$350,000
(with AU$50,000 payable within 10 days and $300,000 upon grant of licence by
the Northern Territory Government) and a 2.5% royalty.

 

The disposal is subject to normal conditions, including entering into a formal
sales and purchase agreement and government approvals.

 

The net proceeds of the disposal will be used to progress helium exploration
at the Company's US projects.

 

The book value of EP(A) 155 in Mosman's accounts was nil at 30 June 2024. It
generated no profit and there are no historic profits or losses.

 

US Projects

 

Sagebrush Project

The due diligence of the Seeley Oil Company acquisition is progressing
well, including a comprehensive technical review using the
available high-quality seismic, indicating the potential for new
multiple dual target wells targeting oil and helium. Howard McLaughlin is
undertaking a site visit this week with closing planned for 31 January
2025. Upon completion, Mosman is entitled to production revenue from 1 January
2025 (currently circa 40 bopd gross). The initial exploration planning
suggests a six square mile (15.5 sq kms) 3D seismic survey be acquired as
soon as possible to finalise the first drilling location, and planning has
started for designing and permitting a new well anticipated later in 2025.

 

Coyote Wash

The Coyote Wash lease is progressing with required documentation prepared and
submitted for routine approval by the Bureau of Indian Affairs. Exploration
planning has commenced and will be undertaken in coordination with the
Sagebrush Project.

 

Vecta Project

As Mosman is not the Operator, the Company relies on the Operator to manage
the project. Vecta Oil & Gas Limited has advised it is actively working on
progressing drilling but at this stage there is no further clarification on
timing. Mosman is aware that there are many rigs licenced to drill water
wells, but not many with the required depth capacity for the proposed helium
well. The alternative is a drilling rig with depth capacity, some of which are
certified to drill water wells and others that are available would need to
obtain that certification. Vecta has operated and drilled water wells before,
and are familiar with the relevant regulations and procedures.

 

Andy Carroll, Chief Executive Officer of Mosman, said: "We continue to
progress our focus on helium exploration. Our view is that projects in the USA
have high potential and operations are lower cost coupled with earlier
drilling timing compared to Australia. I am particularly excited about the
near-term potential of Sagebrush with existing production and infrastructure
and the adjacent Coyote Wash project. Whilst we are disappointed there has not
yet been drilling at the Vecta Project, we are confident this low-cost project
will provide drilling activity in the near term and potential for early
production."

 

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this information is
now considered to be in the public domain.

 

 

Enquiries:

 Mosman Oil & Gas Limited                                             NOMAD and Joint Broker

 Andy Carroll                                                         SP Angel Corporate Finance LLP

 CEO                                                                  Stuart Gledhill / Richard Hail / Adam Cowl

 acarroll@mosmanoilandgas.com (mailto:acarroll@mosmanoilandgas.com)   +44 (0) 20 3470 0470

 Alma                                                                 Joint Broker

 Justine James / Will Merison                                         CMC Markets UK Plc

 +44 (0) 20 3405 0205                                                 Douglas Crippen

 +44 (0) 7525 324431                                                  +44 (0) 020 3003 8632

 mosman@almastrategic.com (mailto:mosman@almapr.co.uk)

 

Updates on the Company's activities are regularly posted on its website:
www.mosmanoilandgas.com (http://www.mosmanoilandgas.com)

 

Notes to editors

Mosman (AIM: MSMN) is a helium, hydrogen and hydrocarbon exploration,
development, and production company with projects in the US and Australia.
Mosman's strategic objectives remain consistent: to identify opportunities
which will provide operating cash flow and have development upside, in
conjunction with progressing exploration. The Company has several projects in
the US, in addition to exploration projects in the Amadeus Basin in Central
Australia.

 

 

 

 

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