USA Helium Project Update

In brief · summary, not quotable

Vecta helium project drilling contract signed; Sagebrush acquisition due diligence completed and closing imminent.

Mosman working interest in Vecta project 20%
Sagebrush acquisition working interest 82.5%

Full announcement

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Mosman Oil and Gas Limited (AIM:MSMN) the helium, hydrogen and hydrocarbon exploration, development and production company, announces an update on the Vecta helium project and the Sagebrush project acquisition.

Vecta Helium Project

Vecta Oil and Gas Ltd, operator of the Vector Helium project in which Mosman has 20% WI, has signed a drilling contract with Desert Eagle Drilling LLC ("DED") to drill five wells. DED is the drilling arm of Desert Eagle Operating LLC which has successfully drilled and is producing helium at the Red Rock field wells in Las Animas County, Colorado. The drilling contract includes the intention to commence drilling as soon as possible, depending on timing of various routine matters and weather conditions. Further details will be provided in due course.

Sagebrush Project

At the Sagebrush Project, due diligence has been satisfactorily completed for the acquisition of an 82.5% working interest from Seeley Oil Company and the completion process has commenced. Given the time zones with USA and Australia, a 31 January completion may not be announced in London until Monday 3 February.

Map of Sagebrush and Coyote Wash Projects

Sagebrush production infrastructure

Andy Carroll, Chief Executive Officer of Mosman, said: "We are pleased the drill contract has now been signed on the Vecta project and to see this progressing. The Company is also on track to finalise this important Sagebrush acquisition where we believe there is significant helium potential and additional oil potential and where oil revenue from the existing producing wells will help fund the ongoing exploration and development program."

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.