REG - Mosman Oil & Gas - Termination of Drilling Programme at Vecta

Mosman Oil and GasAnnouncement

03/07/2025 11:15

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RNS Number : 6342P  Mosman Oil and Gas Limited  03 July 2025

3 July 2025

 

Mosman Oil and Gas Limited

("Mosman" or the "Company")

 

Termination of Drilling Programme at Vecta Project

 

Further to its announcement of 27 June, Mosman Oil and Gas Limited (AIM:
MSMN) announces the termination of its drilling campaign at the Vecta Helium
Project following disappointing results from the first three wells.

 

The campaign, targeting the helium-rich Lyons formation at depths of 1200-1500
feet, included prospects in the Billy Goat AMI, BARD AMI, and Garcia AMI.
Both the BARD and Garcia prospects encountered the Lyons formation deeper
than anticipated, with water-wet conditions at the top and no structural traps
as predicted by surface mapping. These results indicate that surface mapping
is not a reliable predictor of subsurface structures in this poorly explored
region, which lacks seismic data and modern subsurface logs.

 

Under the agreement with its partners, Mosman disposed of its cost
commitments in the Billy Goat AMI in exchange for a royalty on future
revenue prior to drill results being obtained with zero cost to the
Company, funded 100% of the drilling in the BARD AMI and 20% of
the drilling in the Garcia AMI. The remaining two planned wells incur no
cost to Mosman, allowing the Company to exit the programme with minimal
financial impact and no further payments. The total cost to Mosman of the
drilling across the campaign was US$214,931.

 

The Lyons formation, a Permian-aged sandstone reservoir, typically contains
helium percentages of 2-3%, with historical highs up to 11%. However, the
low-pressure gas (below 40 psi) and resultant low flow rates require high
helium concentrations to justify the extensive development wells needed for
commercial viability. Mosman's decision to exit the project reflects a
strategic move to limit exposure in a high-risk exploration area.

 

Howard Mclaughlin, Interim Chief Executive Officer of Mosman, said: "We
thank our partners for enabling Mosman to exit the programme early with
minimal cost. We now look forward to focusing our efforts on the larger
opportunities at our Sagebrush and Coyote Wash helium projects in Colorado,
where we see significant potential for growth."

 

 

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

 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 royalty interests in Australia.

 

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