REG - Mosman Oil & Gas - Vecta Project Update

Mosman Oil and GasAnnouncement

Wed 07:00

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RNS Number : 3817K  Mosman Oil and Gas Limited  28 May 2025

28 May 2025

Mosman Oil and Gas Limited

("Mosman" or the "Company")

Vecta Project Update

Further to the Company's announcement on 20 May 2025, Mosman Oil and Gas
Limited (AIM:MSMN) the helium, hydrogen and hydrocarbon exploration,
development and production company, announces an update on the Vecta Project
in Colorado, US.

 

Mosman, Vecta Oil and Gas Ltd ("Vecta") and Desert Eagle Operating LLC
("Desert Eagle" or "DE") have reached a tripartite agreement regarding
commercial arrangements on the Billy Goat Area of Mutual Interest lease area
("Billy Goat") that is summarised as follows:

 

 ·             Desert Eagle acquires a 92% working interest in Billy Goat and becomes
               Operator
 ·             Mosman receives a 5% share of helium revenue in the form of an over-riding
               royalty interest on all leases in Billy Goat and will no longer hold a working
               interest in Billy Goat.
 ·             Mosman had committed to pay 100% of the drilling costs of the first well at
               Billy Goat but now does not have to pay any costs of this well nor any future
               wells or development costs in Billy Goat.
 ·             Vecta will have an 8% carried interest in Billy Goat.
 ·             If Desert Eagle has not begun the process of permitting one or more wells in
               Billy Goat with the State of Colorado Energy and Carbon Management Commission
               within six months, then Billy Goat reverts to Vecta 70% and Mosman 30% working
               interest respectively.

 

This Agreement does not impact the Company's 20% working interest in the
remaining Vecta Project AMI areas called "The Bard", "Garcia", "Treasure Hill"
and "Mona Loa".

 

The drilling rig crew will be on a short break after completing operations on
the first well, Barclay-TH 295 106A, and will return on 2 June, when further
drilling on the wider Vecta Project will commence. The next drill location on
the Vecta Project is expected to be the "The Bard" which is adjacent to Billy
Goat.

 

Billy Goat is now the property of the working interest parties being Desert
Eagle and Vecta and any data is considered commercially confidential.

 

Carrying value of asset in Mosman's balance sheet is US$200,000 and there are
no profits or losses attributable to Mosman's existing working interest in
Billy Goat.

 

Andy Carroll, Chief Executive Officer of Mosman, said: "This arrangement with
Desert Eagle is the best way for Mosman to commercialise our interest in the
Billy Goat asset. Desert Eagle and associated companies are the leading helium
drilling, development, production and marketing group in this area of Colorado
with a proven track record of delivery.

 

"The 5% overriding royalty interest provides the opportunity for Mosman to
share in revenues from the Billy Goat AMI lease without capital investment in
drilling and development, and without ongoing production operating costs.

 

"This allows Mosman to allocate capital to explore further opportunities in
the drilling of other wells in the wider Vecta Project and in the development
of Sagebrush where helium is proven having been tested in an existing well
with access to nearby production infrastructure.

 

"We look forward to further drilling on the multiple wells in the wider Vecta
Project once the drilling rig crew returns on 2 June."

 

 

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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