REG - Mosman Oil & Gas - Project Review Confirms Helium at Sagebrush-1 Well

Mosman Oil and GasAnnouncement

16/04/2025 07:00

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RNS Number : 1863F  Mosman Oil and Gas Limited  16 April 2025

16 April 2025

 

Mosman Oil and Gas Limited

("Mosman" or the "Company")

 

Project Review Confirms Helium at Sagebrush-1 Well

 

Mosman Oil and Gas Limited (AIM:MSMN) the helium, hydrogen and
hydrocarbon exploration, development and production company, announces that
historic gas sample data confirms helium and methane in the Leadville
Formation at the Sagebrush Project, Colorado, USA (82.5% WI).

 

Gas composition confirms helium

 

Mosman's technical team has reviewed hard copies of data received from the
former operator, Seeley Oil Company, and found reports of gas sample analyses
dated December 30 1993, following an open hole drill stem test ("DST")
performed at the Sagebrush-1 well in December 1993. This report states the DST
gas samples contained 2.76% helium, circa 20% methane, and significant
quantities of nitrogen (35%) and carbon dioxide (40%), alongside traces of
other heavier hydrocarbons (3%).

 

Commercial flow rates

 

The DST flowed gas to surface in the range 152-163 mcfd.

 

These flow rates, combined with the attractive gas composition, indicate that
this well could be a commercial producer of helium with the additional
financial benefit of methane production that may be useful for generating
power for the separation of helium, for compression and/or for added value
with sales of natural gas to power stations.

 

Next steps

 

The next step is a production feasibility study to determine optimal helium
and methane separation and sale. Carbon dioxide may be vented or sold, and
nitrogen would be vented to atmosphere.

 

The Sagebrush-1 oil production well could be converted from producing oil from
the Ismay formation to producing helium and methane from the Leadville
formation at an estimated cost of c. US$100,000. This could be achieved
relatively quickly, however, the current plan is to look for the most
cost-effective way to separate the helium and transport it to market.

 

Future development wells will be considered once 3D seismic is acquired,
processed and interpreted in second half 2025. The timing of the new 3D
seismic is subject to the regulatory approval process and further updates will
be provided in due course.

 

There is a pipeline on location which was previously used to transport methane
from this wellsite to market, that is now currently suspended and unused, and
will now be evaluated as a possible initial transportation solution. There are
several potential ways to market the helium, including utilising pipelines
connected to the Lisbon Valley helium plant, and the Aneth field.

 

Existing pipeline infrastructure at Sagebrush-1 production site

 

Andy Carroll, Chief Executive Officer of Mosman, said: "We are excited to find
such valuable helium content data that is within our broad range of
expectations based on helium content of other wells in the area. This is an
important data point to help assess the potential commercial value of not only
our Sagebrush project but also our nearby Coyote Wash project.

 

"All initial indications are that the helium content and flow rate from the
DST suggest this Sagebrush-1 oil producing well could be recompleted and
converted to commercial helium production. This information enables us to move
to engineering studies and commercial negotiations with the potential for
helium production within 12 months utilising existing infrastructure.

 

"Mosman management and in-house technical team attended the 2025 North
American Helium & Hydrogen Conference in Denver last week and are now in
Durango meeting the Ute Mountain Ute council and management, conducting site
visits and meeting technical advisors."

 

 

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

 mosman@almastrategic.com (mailto:mosman@almapr.co.uk)                +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 exploration projects in the Amadeus Basin in Central
Australia.

 

 

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