S&P 500 eases slightly from fresh record high after stronger economic growth
LONDON - Mosman Oil and Gas Limited (AIM:MSMN) announced Thursday it has terminated its drilling campaign at the Vecta Helium Project following disappointing results from the first three wells.
The exploration program, which targeted the helium-rich Lyons formation at depths of 1,200-1,500 feet, encountered significant challenges. Both the BARD and Garcia prospects found the Lyons formation deeper than anticipated, with water-wet conditions and no structural traps as predicted by surface mapping.
The company noted that surface mapping proved unreliable for predicting subsurface structures in this poorly explored region, which lacks seismic data and modern subsurface logs.
Mosman had previously disposed of its cost commitments in the Billy Goat AMI in exchange for a royalty on future revenue. The company funded 100% of drilling in the BARD AMI and 20% in the Garcia AMI, with total costs across the campaign reaching $214,931.
The remaining two planned wells would have incurred no cost to Mosman, allowing the company to exit the program with no further financial obligations.
According to the press release, the Lyons formation typically contains helium percentages of 2-3%, with historical highs up to 11%. However, low-pressure gas below 40 psi and resulting low flow rates require high helium concentrations to justify commercial development.
Howard Mclaughlin, Interim Chief Executive Officer of Mosman, stated the company will now focus on its Sagebrush and Coyote Wash helium projects in Colorado.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.