SYDNEY – Mosman Oil and Gas Limited (AIM: MSMN), a specialist helium, hydrogen and hydrocarbons exploration company, has entered into an agreement to sell its EP(A) 155 exploration rights to Westmarket Pty Ltd, a subsidiary of Georgina Energy. Automaton (LSE: GEX). The deal, valued at AU$350,000, includes an upfront payment of AU$50,000 and the balance upon licensing by the Northern Territory Government, as well as a 2.5% royalty. .
The transaction is part of Mosman’s strategy to focus on its American portfolio, following the planned sale of another asset, EP-145. Proceeds from the sale of EP(A) 155 will be used to advance helium exploration projects in the United States. The asset had a zero book value as of June 30, 2024 and had generated no profit for Mosman.
In the United States, the company is conducting due diligence for the acquisition of Seeley Oil Company, which includes a technical review of high-quality seismic data. A site visit by Howard McLaughlin is planned for this week, and the acquisition is expected to be completed on January 31, 2025. Mosman will be entitled to production revenues from January 1, 2025, which currently stands at approximately 40 barrels of oil per day. Initial exploration plans for the Sagebrush Project include the acquisition of a 3D seismic survey to finalize drilling locations, with well design and permitting expected later in the year.
Further exploration planning is underway on the Coyote Wash claim, with necessary documentation submitted for approval by the Bureau of Indian Affairs. The project is coordinated alongside the Sagebrush project.
On the Vecta project, of which Mosman is not the operator, Vecta Oil & Gas Limited is working to progress drilling operations. However, there is no specific timetable for drilling. Challenges include the availability of suitable drilling rigs, 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 operational costs and faster drilling times compared to Australia. He highlighted the near-term potential of the Sagebrush project, with its existing production and infrastructure, as well as the adjacent Coyote Wash project. Carroll also expressed optimism about the Vecta project, despite the lack of drilling, due to its low cost nature 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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