Mosman Oil and Gas sells Australian rights for AU$350,000

SYDNEY - Mosman Oil and Gas Limited (AIM: MSMN), an exploration company specializing in helium, hydrogen, and hydrocarbon, has entered into an agreement to sell its EP(A) 155 exploration rights to Westmarket Oil & Gas 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 balance upon the grant of a license by the Northern Territory Government, along with a 2.5% royalty.

The transaction is part of Mosman's strategy to concentrate on its United States portfolio, following the proposed sale of another asset, EP-145. The proceeds from the sale of EP(A) 155 will be used to advance helium exploration projects in the U.S. The asset had a book value of nil as of June 30, 2024, and had not generated any profits for Mosman.

In the U.S., the company is proceeding with the 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 scheduled this week, with the acquisition expected to close on January 31, 2025. Mosman will be entitled to production revenue from January 1, 2025, which currently stands at approximately 40 barrels of oil per day. Initial exploration plans at the Sagebrush Project include acquiring a 3D seismic survey to finalize drilling locations, with well design and permitting anticipated later in the year.

Further exploration planning is underway at the Coyote Wash lease, with necessary documentation submitted for approval by the Bureau of Indian Affairs. The project is being coordinated alongside the Sagebrush Project.

At the Vecta Project, where Mosman is not the operator, Vecta Oil & Gas Limited is working on advancing drilling operations. However, there is no specific timeline provided for drilling. Challenges include the availability of suitable drilling rigs, with some certified for water well drilling and others requiring certification for the proposed helium well.

Andy Carroll, CEO of Mosman, expressed confidence in the U.S. projects, citing their high potential, lower operational costs, and quicker drilling timelines compared to Australia. He highlighted the near-term potential of the Sagebrush Project, with its existing production and infrastructure, and the adjacent Coyote Wash project. Carroll also conveyed optimism for the Vecta Project, despite the absence of drilling, due to its low-cost nature and potential for early production.

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

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