Mosman Oil and Gas advances US projects, sells Australian assets

LONDON - Mosman Oil and Gas Limited (AIM:MSMN), an exploration and production company specializing in helium, hydrogen, and hydrocarbons, has announced updates on its operations, corporate strategy, and changes to its board. The company has made progress on the sale of its Australian assets and is identifying drilling opportunities in Colorado.

In the US, Mosman operates the Coyote Wash and Sagebrush projects in Colorado. Technical work has identified a promising drilling target in the Coyote Wash area, where an older well previously encountered oil, producing 40 barrels of oil per day. The well is believed to have been drilled on the edge of an algal mound, making it a potential site for further exploration. Additionally, a deeper helium target has been discovered in the Leadville formation, offering an opportunity for a dual target test of both oil and helium.

The company has not received an update on the drilling schedule for the Vecta Helium Project, in which it holds a 20% working interest. A meeting with Vecta’s operator is scheduled for next week, with further information to be provided afterwards.

Mosman’s Australian asset, EP-145, is in the process of being sold to Echelon Resources Limited. The completion of a 5% helium and hydrogen Royalty Deed with Echelon is underway, including an option for Mosman to re-acquire the area if Echelon ceases exploration or production. The sale is pending government approval, after which Echelon will pay Mosman AU$400,000. This sum will be allocated to fund drilling and seismic activities in the US. Echelon’s involvement in the Mereenie oil and gas field and its plans to acquire seismic and drill in EP-145 could expedite the production and commercialization of the asset.

Additionally, Mosman has finalized a sale contract with Westmarket Oil & Gas Pty Ltd for Oilco Pty Ltd, which is the applicant in EPA-155. A deposit of AU$50,000 has been received, and a further AU$300,000 will be paid upon the grant of the permit.

As for corporate updates, Mosman has appointed Mr. Carl Dumbrell as Chairman of the Board, effective immediately. The previous Chairman, Nigel Harvey, will remain as a Non-Executive Director. Mr. Dumbrell, who joined the Board on 28 September 2023, is expected to play a crucial role in Mosman’s future growth with his extensive experience in finance and corporate governance.

This report is based on a press release statement provided by Mosman Oil and Gas Limited.

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