REG - Mosman Oil & Gas - Helium Acquisition

Mosman Oil and GasAnnouncement

03/06/2024 07:00

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RNS Number : 8122Q  Mosman Oil and Gas Limited  03 June 2024

3 June 2024

 

 

Mosman Oil and Gas Limited

("Mosman" or the "Company")

 

Helium Acquisition

Strategic first move in to helium in USA

 

Mosman Oil and Gas Limited (AIM: MSMN) the hydrocarbon, helium and hydrogen
exploration, development, and production company, has acquired a 10% working
interest ("WI") in a helium project in Las Animas County, Colorado, USA (the
"Vecta Helium Project") from Vecta Oil and Gas Ltd, a private company that has
explored, drilled and produces helium in Colorado (the "Acquisition"). Vecta
will own the remaining 90% WI and operate the project.

 

Helium production in Las Animas County includes the historic Model Dome field
which recorded 7-11% helium content. Other companies active in the area
include Desert Eagle Operating producing helium at Red Rocks, and Blue Star
Helium (ASX:BNL|OTCQB: BSNLF) developing helium discoveries at
Galactica/Pegasus.

Vecta drilled the Sammons exploration well last year in an Area of Mutual
Interest ("AMI") arrangement with Blue Star Helium and discovered helium and
carbon dioxide.

The Vecta Helium Project includes c 48,000 leased acres in Colorado, with five
identified helium prospects. The exploration strategy is to drill an
exploration well on each of the 5 prospects in 2024. Following a successful
exploration programme, the next step would be to drill helium production
wells.

 

The consideration for the 10% WI is US$500,000, to be paid in instalments of
US$50,000 per month for 10 months. This is expected to be funded from a
combination of existing cash and proceeds from the realisation of oil and gas
assets (which may include the sale of existing projects).

 

There is no obligation on Mosman to fund the exploration wells, however if
Mosman does not, it would lose its interest in that prospect area (Area of
Mutual Interest or "AMI"). At the time of drilling, it is also a requirement
that Mosman has paid both its share of drilling costs and the US$500,000
acquisition cost. Mosman intends to fund its 10% share of the 5 exploration
wells, estimated to cost c US$259,000 per well (gross). Mosman's share of
drilling costs is c US$130,000 for a total investment of c US$ 630,000, to be
funded from working capital and by selling existing oil and gas assets.

 

There are no profits and losses associated with the working interest being
acquired.

 

Andy Carroll, CEO of Mosman commented: "We see great potential in helium, as
demonstrated with our commitment and progress at EP 145 in Australia.  We
reviewed a number of opportunities and selected the Vecta Helium Project due
to the proven presence of helium and the low cost of shallow exploration and
production wells.

 

"This further demonstrates our commitment to deliver on the corporate plan to
focus on helium opportunities, where we are able to leverage our helium
exploration expertise gained over several years in Australia to identify
quality helium projects.

 

"Looking ahead, Mosman will continue to commercialise its oil and gas assets
and seek opportunities for helium and hydrogen projects."

 

 

 

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@almastrategic.com)

 

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 an oil 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 of
existing exploration permits. The Company has several projects in the US, in
addition to exploration projects in the Amadeus Basin in Central Australia.

 

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