REG - Mosman Oil & Gas - WI Increased to 20% of Vecta Helium Project

Mosman Oil and GasAnnouncement

23/07/2024 07:45

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RNS Number : 4413X  Mosman Oil and Gas Limited  23 July 2024

23 July 2024

Mosman Oil and Gas Limited

("Mosman" or the "Company")

WI Increased to 20% of Vecta Helium Project

Mosman Oil and Gas Limited (AIM: MSMN) the helium, hydrogen and hydrocarbon
exploration, development and production company, has acquired a further 10%
working interest ("WI") in the Vecta Helium Project in Las Animas County,
Colorado, USA from Vecta Oil and Gas Ltd, increasing Mosman's total WI in the
project to 20%. Vecta will continue to own the remaining 80% WI and operate
the project.

 

As set out in Mosman's announcement of 3 June 2024, the Vecta Helium Project
includes c 48,000 leased acres in Colorado, with five identified helium
prospects. The acreage has now increased to 51,000 acres. The exploration
strategy is to drill an exploration well on each of the five prospects in
2024. Four of these wells already have approvals in place. Following a
successful exploration programme, the next step would be to acquire seismic
and drill helium production wells.

 

The consideration for the additional 10% WI is 650,000,000 shares (this number
was agreed based on the equivalent of US$500,000 at the share price on 19 July
which is now worth circa US$587,000 based on Mosman's closing share price on
22 July of 0.07p per share) and is equal to approximately 4.29% of Mosman's
enlarged issued share capital.

 

Helium production in Las Animas County includes the historic Model Dome field
which recorded 7-11% helium content. Other companies active in the area
include Desert Eagle Operating producing helium at Red Rocks, and Blue Star
Helium (ASX:BNL|OTCQB: BSNLF) developing helium discoveries at
Galactica/Pegasus.

 

Mosman intends to fund its 20% share of the five exploration wells, estimated
to cost cUS$259,000 per well (gross) which equates to US$ 52,000 net cost to
Mosman for its 20% share. Mosman's drilling costs for five wells is
cUS$259,000, which would bring the total investment to cUS$1,259,000, of which
US$659,000 remains to be funded from cash reserves (US$100k having already
been paid) along with issuing 650,000,000 shares for the second 10% WI noted
above.

 

It should be noted that whilst Mosman is not obliged to fund the exploration
wells, if it does not, it would lose its interest in that prospect area (Area
of Mutual Interest or "AMI"). At the time of drilling, it is also a
requirement that Mosman has paid both its share of drilling costs and the
initial 10% acquisition cost of US$500,000, as previously set out in the
Company's  3 June 2024 announcement.

 

There are no profits and losses associated with the working interest being
acquired.

 

Andy Carroll, CEO of Mosman commented: "From our initial evaluation, we see
great potential in the Vecta Helium project and are pleased to be able to
increase our interest in this helium project with near term drilling and a
clear plan for development of discoveries near existing infrastructure.

 

"Vecta's agreement to take shares is a strong statement of support for Mosman
and the upside potential of the drilling prospects."

 

Admission to AIM and Total Voting Rights

Application will be made to the London Stock Exchange plc for 650,000,000 new
Ordinary Shares to be admitted to trading on the AIM market ("Admission") with
Admission expected to occur on or around 29 July 2024. The new Ordinary Shares
will rank pari passu in all respects with the existing Ordinary Shares
including the right to receive any dividend or other distribution thereafter
declared, made or paid. There are no Ordinary Shares held in treasury.
Following Admission of the 650,000,000 new Ordinary Shares the total number of
voting rights in the Company will be 15,135,362,930.

 

Consequently, the above figure may be used by shareholders in the Company as
the denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change in their interest in, the
share capital of the Company under the Company's Constitution.

 

 

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

 +44 (0) 7525 324431                                                  +44 (0) 020 3003 8632

 mosman@almastrategic.com (mailto:mosman@almapr.co.uk)

 

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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