30th Dec 2024 10:49
(Alliance News) - Mosman Oil & Gas Ltd said on Monday it has acquired a majority working interest in the Sagebrush project in Colorado, a 10,000-acre lease that holds helium, hydrocarbons, and existing oil production.
The New South Wales, Australia-based mining company, which focuses on helium, hydrogen, and hydrocarbons said it will acquire approximately 83% of the project for USD630,000 in cash, funded from existing reserves. The deal, effective January 1, is expected to close by January 31.
Sagebrush, adjacent to Mosman's Coyote Wash project, features seven producing oil wells with gross oil production of 40 barrels per day. Mosman anticipates "significant" helium exploration potential in the area, with geological studies identifying the Leadville and McCracken formations as likely reservoirs.
Chief Executive Officer Andy Carroll said: "The Sagebrush acquisition along with the Coyote Wash project is the fulfillment of a key goal for Mosman's strategic shift toward helium exploration, development and commercialisation. Mosman now has a very strong diversified portfolio of attractive helium and hydrocarbon assets at various stages of maturity."
Shares in Mosman were up 4.4% at 0.028 pence each in London on Monday morning.
By Eva Castanedo, Alliance News reporter
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