REG - Mosman Oil & Gas - USA Helium Project Update and EP145 Sale Update

Mosman Oil and GasAnnouncement

03/02/2025 08:30

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RNS Number : 6361V  Mosman Oil and Gas Limited  03 February 2025

3 February 2025

 

Mosman Oil and Gas Limited

("Mosman" or the "Company")

 

USA Helium Project Update

EP145 Sale Update

 

Mosman Oil and Gas Limited (AIM:MSMN) the helium, hydrogen and
hydrocarbon exploration, development and production company, is pleased to
announce the completion of the acquisition of 82.5% working interest in the
Sagebrush Project in Colorado, announced on 30 December 2024. This 82.5%
interest will be held by Mosman Helium LLC (a wholly owned subsidiary). The
effective date of this transaction was 1 January 2025.

 

Background on the Sagebrush Project

 

The Sagebrush-1 well drilled in 1984 tested non-flammable gas (but was not
tested for helium) below the salt layer and made an oil discovery above the
salt layer. The well's initial production was in excess of 600 bbls/day of oil
and it has cumulatively produced over 300,000 bbls of oil (gross) since coming
into production across nine wells, seven of which are producing and two of
which are shut-in.

 

Oil production at Sagebrush has been fairly consistent since 2010, with a
gross annual rate of approximately 17,000 bbls from the seven producing wells.

 

Existing infrastructure includes roads, well sites, wells, separators, storage
tanks and a pipeline (which is currently shut in). The lease area has 2D
seismic and some 3D seismic which has been used to identify several prospects
for both oil and helium.

 

 

 

 

Planning is already underway for reprocessing of the 2D swath data covering
both Sagebrush and Coyote Wash project areas and selective areas of Coyote
Wash 3D. Acquisition of approximately 6-8 square miles of new 3D seismic in
the most southern portion of the Sagebrush Project is also being planned. It
is anticipated the combined cost of the 2D reprocessing and 3D acquisition and
interpretation will be in the order of USD 500,000 which will be funded from
Mosman's existing cash resources.

 

Several leads have been identified in the Ismay formation overlying the salt
which is the production reservoir in Sagebrush and in the Roadrunner and Towac
oil fields to the west of Sagebrush. There are also large helium prospects in
the Leadville formation under the salt. The permitting process for 3D
acquisition and drilling will be fast-tracked beginning with the required
environmental and historical preservation surveys.

 

The drilling approval process can take several months and Mosman cannot
predict when this will be received but is targeting to drill later in 2025.

 

Andy Carroll, Chief Executive Officer of Mosman, said: "We are pleased to
finalise this important acquisition where we believe there is additional oil
potential and significant helium potential. It is a great combination with the
adjacent Coyote Wash project 100% owned by Mosman.

 

"The oil revenue from the producing wells will help fund the ongoing
exploration and development program."

 

 

EP-145

 

Mosman notes Echelon Resources Limited (ASX:ECH) has today updated on its
progress re EP-145, further to Mosman's announcements on 14 and 30 January
2025. The parties have now entered into a formal sale and purchase agreement
with completion subject to government approvals:
https://www.listcorp.com/asx/ech/echelon-resources-limited/news/ep145-permit-transaction-update-3146808.html
(https://www.listcorp.com/asx/ech/echelon-resources-limited/news/ep145-permit-transaction-update-3146808.html)

 

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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