SYDNEY – Mosman Oil and Gas Limited (AIM: MSMN), an exploration company specializing in helium, hydrogen, and hydrocarbons, has entered into an agreement to sell EP(A)155 exploration rights to – Westmarket Pty Ltd, a subsidiary of Georgina Energy. PLC (LSE: GEX). The deal, valued at AU$350,000, includes an initial payment of AU$50,000 and the remainder on licensing by the Northern Territory Government, plus a 2.5% royalty.
The transaction is part of Mosman's plan to focus on the United States portfolio, following the proposed sale of another asset, EP-145. Proceeds from the sale of EP(A) 155 will be used to advance helium exploration projects in the US The asset had a book value of nil as of June 30, 2024, and did not generate any income for Mosman.
In the US, the company is proceeding with the forced purchase of Seeley Oil Company, which includes the technical review of high-resolution seismic data. A site visit by Howard McLaughlin is scheduled for this week, with the acquisition expected to close on 31 January 2025. Mosman will be entitled to revenue from production from 1 January 2025, which currently stands at around 40 barrels of oil per day. Initial exploration plans for the Sagebrush Project include obtaining a 3D seismic survey to complete drilling locations, with well design and permitting expected later this year.
Further planning is underway on the Coyote Wash lease, and the necessary documents have been submitted for approval by the Bureau of Indian Affairs. This project is organized alongside the Sagebrush Project.
In the Vecta Project, where Mosman is not an operator, Vecta Oil & Gas Limited is working on the development of drilling operations. However, there is no set time for digging. Challenges include the availability of suitable drilling equipment, which is certified to drill a water well and some require certification of a proposed helium well.
Andy Carroll, CEO of Mosman, expressed confidence in the US projects, citing their high capacity, low operating costs, and fast drilling time compared to Australia. He highlighted the nearby potential of the Sagebrush Project, and existing production and infrastructure, as well as the nearby Coyote Wash project. Carroll also expressed confidence in the Vecta Project, despite the lack of recruitment, due to its low cost and early production potential.
The information provided in this article is based on a press release from Mosman Oil and Gas Limited.
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