REG - Mosman Oil & Gas Ltd - Sagebrush Project Update

Mosman Oil and GasAnnouncement

21/07/2025 07:10

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RNS Number : 8313R  Mosman Oil and Gas Limited  21 July 2025

21 July 2025

 

Mosman Oil and Gas Limited

("Mosman" or the "Company")

 

Sagebrush Project Update

 

Mosman Oil and Gas Limited (AIM: MSMN) the helium, hydrogen, and hydrocarbon
exploration, development, and production company, is pleased to provide an
update on the Sagebrush helium project in Colorado, USA, where it holds an
82.5% working interest ("Sagebrush" or the "Project").

Engagement of Sproule for Independent Resource Estimate

Mosman has engaged Sproule Incorporated ("Sproule"), a globally recognised
independent energy consulting firm, to provide an independent estimate of
helium resources for the Sagebrush project. This engagement follows the
Company's internal assessments and the announcement on 8 May 2025 of maiden
contingent resources based on a report from Four Corners Helium LLC (FCH)
dated 5 May 2025. The FCH report estimated:

 

• 205 million cubic feet (mmcf) of net helium contingent resources (C2
Best Estimate, after 18.67% royalty and Mosman's 82.5% working interest),
and

• 1.683 billion cubic feet (bcf) of net hydrocarbon contingent
resources (based on an initial gas in place of 18.4 bcf and recoverable gas
of 11 bcf).

 

Sproule's scope of work includes a comprehensive review of geological and
engineering data, including historic gas sample analyses from the Sagebrush-1
well, which indicated a gas composition of 2.76% helium, 19.5% methane, and
other gases. The independent assessment is expected to provide estimates of
both contingent and prospective helium resources, further validating and
refining Mosman's internal estimates to support future development and
commercialisation efforts. Mosman will provide further updates upon receipt
of Sproule's report.

3D Seismic Survey

The Company intends to commence a 3D seismic survey over the Sagebrush
project area this quarter. This seismic program, which is expected to cover
approximately 16 square miles, will provide detailed subsurface mapping,
enabling Mosman to better define high-potential drilling targets. The
acquisition of 3D seismic data is a critical step in de-risking the Project
and optimising the planning of future exploration and development activities.

Extended Production Test of Sagebrush-1 Well

Mosman is also advancing technical planning for a 4 to 6 week extended
production test of the Sagebrush-1 Leadville Formation at various intervals
from 7200' to approximately 7400'. It was from this formation that the DST and
gas sample were taken. The extended production test, which is targeted for
the fourth quarter of 2025, will provide valuable data on the wells
production potential, particularly for helium and associated hydrocarbons, and
will assist in assessing the commercial viability of the Project. Before the
extended production test can begin, several prerequisites must be
completed, including the finalising of bonding arrangements and completion of
the transfer of ownership of the Project.

These planned operations at Sagebrush will be funded from the Company's
existing cash resources.

Mosman Interim-CEO Howard Mclaughlin, commented: "Engaging
Sproule, acquiring the 3D seismic survey, and advancing the extended
production test at Sagebrush-1 are pivotal steps in our helium strategy. These
initiatives are designed to validate our resource estimates, de-risk the
project, and provide the data needed to advance towards commercialisation. We
are committed to executing these plans efficiently and safely, with the goal
of unlocking the full potential of the Sagebrush project."

 

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

 Carl Dumbrell                 SP Angel Corporate Finance LLP

 Chairman                      Stuart Gledhill / Richard Hail / Adam Cowl

                               +44 (0) 20 3470 0470
 Brand Communications          Joint Broker

 Alan Green                    CMC Markets UK Plc

 Tel: +44 (0) 7976 431608      Douglas Crippen

                               +44 (0) 020 3003 8632

 

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 royalty interests in Australia.

 

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