Mossman Oil & Gas Sells Australian Rights For AU$350,000 By Investing.com

SYDNEY – Mosman Oil & Gas Limited (AIM: MSMN), an exploration company specializing in helium, hydrogen and hydrocarbons, has agreed to sell its EP(A) 155 exploration rights to Westmarket 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 on approval by the Northern Territory Government, along with a 2.5% royalty.

The transaction is part of Mosman’s strategy to focus on its US portfolio following the sale of another asset, EP-145. Proceeds from the sale of EP(A) 155 will be used to advance helium exploration projects in the US. It had a book value of 30 June 2024 and did not generate any profit for Mossman.

In the US, the company is conducting due diligence to acquire Sealy Oil Company, which includes technical evaluation 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 is currently approximately 40 barrels of oil per day. Initial exploration plans for the Sagebrush project include the acquisition of 3D seismic surveys, well design and permitting to complete drilling locations, which are expected later in the year.

Additional exploration plans are underway at the Coyote Wash Lease, with documents necessary for approval by the Bureau of Indian Affairs. The project is being coordinated alongside the Sagebrush project.

Vecta Oil & Gas Limited is advancing drilling operations at the Vecta Project, where Mossman is not an operator. However, there is no specific time limit for digging. Challenges include availability of suitable drilling equipment, some certified for water well drilling and others requiring certification for the proposed helium well.

Mossman CEO Andy Carroll expressed confidence in US projects, citing their higher capacity, lower operating costs and faster drilling times compared to Australia. The Sagebrush project highlighted the near-term potential of the existing production and infrastructure as well as the nearby Coyote Wash project. Despite no drilling, Carroll expressed optimism for the Vecta project because of its low-cost nature and potential for early production.

The information presented in this article is based on a press release issued by Mosman Oil & Gas Limited.

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