31st Jan 2025 11:35
(Alliance News) - Mosman Oil & Gas Ltd on Friday said Vecta Oil & Gas Ltd has signed a drilling contract for the Vector helium project, in which Mosman holds a 20% working interest, and it provided an update on the Sagebrush project acquisition.
The Millers Point, Australia-based helium, hydrogen, and hydrocarbon exploration company said Vecta, the operator of the Vector Helium project in the US state of Colorado, has signed a contract with Desert Eagle Drilling LLC to drill five wells. Desert Eagle, the drilling arm of Desert Eagle Operating LLC, has previously drilled and is producing helium from the Red Rock field wells in Las Animas County, Colorado.
Meanwhile, Mosman said it has completed due diligence for the acquisition of around a 83% working interest in the Sagebrush project, also in Colorado, from Seeley Oil Co LLC. The completion process is now underway, with an announcement on finalisation expected on Monday, February 3.
Chief Executive Officer Andy Carroll 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."
Shares in Mosman Oil were up 6.5% at 0.039 pence in London on Friday morning. The stock earlier hit 0.044p.
By Eva Castanedo, Alliance News reporter
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