Mosman Oil and Gas Ltd (AIM: MSMN) has made a strategic move to expand its helium portfolio by acquiring a working interest (WI) in a helium project located in Las Animas County, Colorado, USA.
As part of this deal, Mosman will obtain a 10% stake in an oil and gas project operated by the private company Vecta, which will retain the remaining 90% WI.
The Vecta Helium Project encompasses approximately 48,000 leased acres in Colorado and includes five identified helium prospects. A well is planned to be drilled on each of these prospects in 2024.
Helium production in Las Animas County includes the historic Model Dome field, with Vecta and several other companies actively operating in the area.
Last year, Vecta drilled the Sammons exploration well in collaboration with Blue Star Helium under an Area of Mutual Interest (AMI) agreement, resulting in the discovery of helium and carbon dioxide.
The acquisition cost for Mosman’s 10% WI is US$500,000, payable in monthly installments from cash reserves and proceeds from the sale of oil and gas assets.
Additionally, Mosman plans to fund its share of the exploration wells, with an estimated cost of approximately US$259,000 per well (gross), bringing its total investment to US$630,000.
Andy Carroll, Mosman’s chief executive, stated, “We see great potential in helium, as demonstrated by our commitment and progress at EP 145 in Australia. We reviewed several opportunities and selected the Vecta Helium Project due to the proven presence of helium and the low cost of shallow exploration and production wells.”
