SYDNEY – Mosman Oil and Gas Limited (AIM: MSMN), a helium, hydrogen and hydrocarbon exploration company, has entered into an agreement to sell its EP(A) 155 exploration rights to Westmarket Pty Ltd, a subsidiary of Georgina Energy PLC (LSE: GEX). The contract, worth AU$350,000, includes an initial payment of AU$50,000 and the balance after the license is awarded by the Northern Territory Government, together with a 2.5% royalty.
The transaction is part of Mosman’s strategy to focus on its portfolio in the United States, following the proposed sale of another asset, EP-145. Proceeds from the sale of the EP(A) 155 will be used to advance helium research projects in the US. The asset had a book value of nil at 30 June 2024 and generated no profit for Mosman.
In the US, the company continues its due diligence for the acquisition of Seeley Oil Company, which includes a technical review of high-quality seismic data. A visit by Howard McLaughlin is scheduled for this week and the acquisition is expected to close on January 31, 2025. Mosman will be entitled to revenue from production from January 1, 2025, which is currently approximately 40 barrels of oil per day. Initial exploration plans at the Sagebrush project include the acquisition of 3D seismic to finalize drill locations, with well design and permitting expected later in the year.
Planning for further exploration in the Coyote Wash lease is underway, and the necessary documentation has been submitted to the Bureau of Indian Affairs for approval. The project is coordinated with the Sagebrush project.
On the Vecta project, where Mosman is not the operator, Vecta Oil & Gas Limited is working to improve drilling operations. However, there is no specific time frame for drilling. Challenges include the availability of suitable wells, some certified for water well drilling and others requiring certification for the proposed helium well.
Andy Carroll, CEO of Mosman, expressed confidence in the US projects, citing their high potential, lower operating costs and faster drilling timelines compared to Australia. He highlighted the short-term potential of the Sagebrush project, with existing production and infrastructure, and the neighboring Coyote Wash project. Carroll also expressed optimism for the Vecta project, despite the lack of drilling, due to its low cost and potential for early production.
The information provided in this article is based on a press release from Mosman Oil and Gas Limited.
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