DENVER - Mosman Oil and Gas Limited (AIM: MSMN) has obtained approval to lease over 4,000 acres in Colorado for helium exploration, the company announced. The lease, part of the Coyote Wash Project, is a result of negotiations with the Ute Mountain Ute Tribe and situates Mosman near existing helium developments in the Four Corners region.
The lease comprises 4,320 acres and follows a detailed technical review by Mosman. The area has been surveyed in high-resolution 3D, with data indicating several promising prospects for helium. Mosman's selection of this specific acreage aims to capitalize on high-grade opportunities.
Four Corners Helium, Mosman's commercial partner, has fostered a four-year relationship with the Ute Mountain Ute Tribe, gaining access to seismic data and a Right of First Refusal for helium leases within the Tribal lands. Mosman has since led the renegotiation of contract terms favorable for helium exploration.
Mosman is now set to finalize its Program of Development, which requires compliance with environmental and historical preservation regulations. The company has engaged a Durango-based environmental consultancy to assist with the necessary documentation. The Bureau of Indian Affairs' approval of this program is anticipated by the end of January 2025.
Upon Bureau approval, Mosman will pay the Ute Mountain Ute Tribe US$30 per acre for exploration rights, totaling US$129,600, with an initial exploration term of three years.
Andy Carroll, CEO of Mosman, expressed that the project represents a significant new exploration endeavor in a prime area for helium, enhancing the company's existing portfolio in Colorado and Australia.
This announcement is considered public information as per Market Abuse Regulations, and Mosman has disclosed it in compliance with market transparency obligations. The information in this article is based on a press release statement.
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