SYDNEY - Mosman Oil and Gas Limited (AIM: MSMN) has announced the sale of its rights to EP(A) 155 in Australia to Westmarket Oil & Gas Pty Ltd for AU$350,000 and a 2.5% royalty. This strategic move allows Mosman to concentrate on advancing helium exploration in its US portfolio.
The transaction, subject to standard conditions and government approvals, involves an initial payment of AU$50,000, with the balance due upon the Northern Territory Government's grant of the license. The company has stated that the net proceeds will be directed towards its helium exploration projects in the United States.
In the US, Mosman is progressing with its Sagebrush Project, where due diligence for the Seeley Oil Company acquisition is underway. A site visit by Howard McLaughlin is scheduled for this week, with the acquisition expected to close on January 31, 2025. Mosman will be entitled to production revenue from January 1, 2025, with current production estimated at around 40 barrels of oil per day. Plans are in place to acquire a 3D seismic survey to determine the first drilling location and to begin designing and permitting a new well expected later in the year.
The company's Coyote Wash lease is advancing, with necessary paperwork submitted for approval by the Bureau of Indian Affairs. Exploration planning for this project is being coordinated with efforts at the Sagebrush Project.
Regarding the Vecta Project, Mosman, not being the operator, is dependent on Vecta Oil & Gas Limited for project management. Vecta has reported active work on drilling progress, though no specific timeline has been provided. Mosman has noted the scarcity of drilling rigs certified for the required depth of the proposed helium well, a challenge that Vecta, with its experience in operating and drilling water wells, is working to overcome.
Andy Carroll, CEO of Mosman, expressed optimism about the US projects, citing their high potential and lower operational costs. He highlighted the near-term potential of Sagebrush, with its existing production and infrastructure, as well as the Coyote Wash project. Carroll also conveyed confidence in the Vecta Project's potential for near-term drilling and early production despite current delays.
This update is based on a press release statement and is intended to inform about recent developments in Mosman Oil and Gas Limited's portfolio.
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