3 June 2024
Mosman Oil and Gas
Limited
("Mosman"
or the "Company")
Helium
Acquisition
Strategic first move in to
helium in USA
Mosman Oil and Gas Limited (AIM:
MSMN) the hydrocarbon, helium and hydrogen exploration,
development, and production company, has acquired a 10% working
interest ("WI") in a helium project in Las Animas County, Colorado,
USA (the "Vecta Helium Project") from Vecta Oil and Gas Ltd, a
private company that has explored, drilled and produces helium in
Colorado (the "Acquisition"). Vecta will own the remaining 90% WI
and operate the project.
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.
Vecta drilled the Sammons
exploration well last year in an Area of Mutual Interest ("AMI")
arrangement with Blue Star Helium and discovered helium and carbon
dioxide.
The Vecta Helium Project includes c
48,000 leased acres in Colorado, with five identified helium
prospects. The exploration strategy is to drill an exploration well
on each of the 5 prospects in 2024. Following a successful
exploration programme, the next step would be to drill helium
production wells.
The consideration for the 10% WI is
US$500,000, to be paid in instalments of US$50,000 per month for 10
months. This is expected to be funded from a combination of
existing cash and proceeds from the realisation of oil and gas
assets (which may include the sale of existing projects).
There is no obligation on Mosman to
fund the exploration wells, however if Mosman 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 US$500,000
acquisition cost. Mosman intends to fund its 10% share of the 5
exploration wells, estimated to cost c US$259,000 per well (gross).
Mosman's share of drilling costs is c US$130,000 for a total
investment of c US$ 630,000, to be funded from working capital and
by selling existing oil and gas assets.
There are no profits and losses
associated with the working interest being acquired.
Andy Carroll, CEO of Mosman
commented: "We see great potential in helium, as demonstrated with our
commitment and progress at EP 145 in Australia. We reviewed a
number of opportunities and selected the Vecta Helium Project due
to the proven presence of helium and the low cost of shallow
exploration and production wells.
"This further demonstrates our
commitment to deliver on the corporate plan to focus on helium
opportunities, where we are able to leverage our helium exploration
expertise gained over several years in Australia to identify
quality helium projects.
"Looking ahead, Mosman will continue
to commercialise its oil and gas assets and seek opportunities for
helium and hydrogen projects."
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
Andy Carroll
CEO
acarroll@mosmanoilandgas.com
|
NOMAD and Joint Broker
SP Angel Corporate Finance
LLP
Stuart Gledhill / Richard Hail /
Adam Cowl
+44 (0) 20 3470 0470
|
Alma
Justine James / Will
Merison
+44 (0) 20 3405 0205
+44 (0) 7525 324431
mosman@almastrategic.com
|
Joint Broker
CMC Markets UK Plc
Douglas Crippen
+44 (0) 020 3003 8632
|
Updates on the Company's activities are regularly
posted on its website: www.mosmanoilandgas.com
Notes to editors
Mosman (AIM: MSMN) is an oil 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 of existing exploration permits. The Company has
several projects in the US, in addition to exploration projects in
the Amadeus Basin in Central Australia.