REG - Mosman Oil & Gas - US Helium Projects Update

Mosman Oil and GasAnnouncement

21/03/2025 08:30

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RNS Number : 6659B  Mosman Oil and Gas Limited  21 March 2025

21 March 2025

 

Mosman Oil and Gas Limited

("Mosman" or the "Company")

 

US Helium Projects Update

 

Mosman Oil and Gas Limited (AIM:MSMN) the helium, hydrogen and
hydrocarbon exploration, development and production company, announces
updates on the first revenue from the Sagebrush project, schedule update on
the Vecta project and ongoing technical evaluation of the Coyote Wash Project
area, Colorado, USA.

 

Sagebrush Project (85.2% WI)

 

Mosman has received the first revenue from oil production at the Sagebrush
project, operated by Mosman, since the completion of the acquisition of the
project. The January 2025 gross revenue was US$53,974. Monthly sales volumes
can be different from production as sales depend on the number of road tankers
that pick-up oil from storage tanks, with each tanker taking about 200 barrels
of oil. In January 2025 there were four loads sold, and in February 2025 there
were six loads sold.

 

Mosman has received results of reprocessing of the Sagebrush 2D seismic swath
which covers the project area. The reprocessing is providing improvements in
clarity and frequency and will be useful in analysing well performance and
developing new drilling prospects.

 

Vecta Project (20% WI)

 

Mosman previously announced that Vecta Oil and Gas Limited ("Vecta"), as the
Operator, had signed a drilling rig contract with Desert Eagle Drilling LLC
("DED") and several matters needed to be resolved before drilling would start.
Mosman has been advised that whilst DED personnel have been drilling helium
production wells under Colorado State oil and gas regulations, different
regulations govern water wells, and it has become apparent that given the
current schedule of periodic tests the qualification process cannot be
completed until after mid-April. Mosman continues to seek more clarity on the
drilling schedule from the Operator in order to keep the market informed, and
continues to express our preference to have drilling happen as soon as
possible.

 

Coyote Wash Project (100% WI)

 

The Coyote Wash Project covers a total area of 4,320 acres with 3D seismic
over the entire area. A number of drilling targets have been identified on 3D
seismic data in the Coyote Wash Project area. Mosman has undertaken a detailed
evaluation of the data and initiated reprocessing of the entire Coyote Wash 3D
to better define drilling opportunities.

 

Six large prospects have previously been mapped on the Coyote Wash 3D seismic
with targets at multiple levels including the Ismay, Leadville and McCracken
Formation for both helium and oil.

 

 

 Location map of the Coyote Wash and Sagebrush Projects

 

 

 

 Two-way time structure Map of Leadville Formation prospects (Source: Four
Corners Helium)

 

 

Andy Carroll, Chief Executive Officer of Mosman, said: "We are pleased to
report progress on Coyote Wash and Sagebrush projects that Mosman operates.
The benefits of the Sagebrush Project providing monthly revenues is the
positive cash flow it contributes that not many other helium exploration
companies enjoy.

 

"I am encouraged to see positive results at the Blue Star Helium/Helium One
projects in the same area as the Vecta Project. We will update the market on
the Vecta drilling schedule once we get greater clarity from the operator.

 

"Mosman management and in-house technical team will be attending the 2025
North American Helium & Hydrogen Conference in Denver on 9-10 April and
will take this opportunity to meet with other industry participants, have
technical discussions with it partners and technical advisers and conduct site
visits."

 

 

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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