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LONDON - Mosman Oil and Gas Limited (AIM:MSMN) has confirmed the presence of helium and methane in the Leadville Formation at its Sagebrush Project, located in Colorado, USA. According to a review of historic gas sample data, the Sagebrush-1 well, drilled in December 1993, revealed a gas composition of 2.76% helium and 20% methane, with significant quantities of nitrogen and carbon dioxide also present.
The data, obtained from reports by the former operator Seeley Oil Company, indicate that the well could potentially become a commercial producer of helium, with the added financial benefit of methane production. The drill stem test (DST) conducted at the time showed gas flow rates to the surface ranging from 152 to 163 thousand cubic feet per day (mcfd).
Mosman’s next step is to conduct a production feasibility study to determine the most effective methods for separating and selling the helium and methane. The company is exploring the possibility of converting the Sagebrush-1 oil production well to produce helium and methane from the Leadville formation at an estimated cost of around US$100,000.
The existing pipeline infrastructure at the site, which was previously used to transport methane, is now being evaluated as a potential transportation solution for the gas. The company is considering several marketing options, including pipelines connected to the Lisbon Valley helium plant and the Aneth field.
Andy Carroll, CEO of Mosman, expressed optimism about the project’s potential, noting the valuable helium content data aligns with expectations based on other wells in the area. He mentioned that initial indications suggest the possibility of recompleting the Sagebrush-1 well for commercial helium production, potentially within 12 months using existing infrastructure.
Mosman’s management recently attended the 2025 North American Helium & Hydrogen Conference and is currently engaging with local stakeholders, including the Ute Mountain Ute council, to further the project’s development. Future development wells will be considered after 3D seismic data is acquired, processed, and interpreted in the second half of 2025, pending regulatory approval.
This announcement is based on a press release statement and contains information now in the public domain, following its publication via Regulatory Information Service.
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