23rd Jul 2024 16:46
(Alliance News) - Mosman Oil & Gas Ltd on Tuesday announced it has acquired a further 10% working interest in the Vecta Helium project in Colorado, US, increasing the firm's total working interest to 20%.
Mosman is a Millers Point, Australia-based helium, hydrogen and hydrocarbon exploration, development and production company. The company explained that the consideration for the further 10% in the project was 650.0m shares. Based on the closing price on Friday, this was worth USD500,000, but is now worth about USD587,000 at the current share price.
Mosman shares were unchanged at 0.07 p per share in London on Tuesday afternoon.
The Vecta Helium project includes circa 51,000 leased acres in Colorado, with five identified helium prospects.
Mosman and Vecta Oil & Gas Ltd intend to drill an exploration well on each of the five prospects by the end of this year once they have approvals in place. Following this, the firms expect to acquire seismic and drill helium production wells.
Mosman said that it intends to fund its 20% share of the five exploration wells. This will bring the firm's total investment in the project to USD1.3 million.
Chief Executive Andy Carroll said: "We see great potential in the Vecta Helium project and are pleased to be able to increase our interest in this helium project with near-term drilling and a clear plan for development of discoveries near existing infrastructure".
By Lydia Doye, Alliance News reporter
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