Mosman acquires majority stake in Colorado helium project

Published 03/02/2025, 09:22
Mosman acquires majority stake in Colorado helium project

DENVER - Mosman Oil and Gas Limited has completed the acquisition of an 82.5% working interest in the Sagebrush Project in Colorado, effectively expanding its portfolio in the helium and hydrocarbon sector. The acquisition, initially announced on December 30, 2024, was finalized with the effective date of January 1, 2025, and will be held through Mosman Helium LLC, a wholly-owned subsidiary.

The Sagebrush Project, notable for its historical oil production, has been a consistent performer with a gross annual production rate of approximately 17,000 barrels from seven active wells. The project also includes infrastructure such as roads, well sites, separators, storage tanks, and a currently shut-in pipeline.

Mosman plans to invest approximately USD 500,000, drawn from its existing cash resources, to reprocess 2D seismic data and acquire new 3D seismic data in the southern portion of the Sagebrush Project. This geophysical work aims to identify prospects for both oil and helium production, particularly in the Ismay formation above the salt layer and the Leadville formation beneath it.

Andy Carroll, CEO of Mosman, expressed optimism about the acquisition, noting the potential for additional oil production and significant helium prospects. He emphasized that oil revenues from the producing wells would support the company’s exploration and development initiatives.

In related news, Mosman also provided an update on the sale of EP145, with Echelon Resources Limited (ASX:ECH) confirming the parties have entered into a formal sale and purchase agreement. The completion of this transaction is subject to government approvals.

The information in this article is based on a press release statement from Mosman Oil and Gas Limited.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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