29 April 2024
Mosman Oil and Gas
Limited
("Mosman"
or the "Company")
EP 145 Farmin receives
Government Approval
Helium and Hydrogen project
work programme now underway with Greenvale Energy
Mosman Oil and Gas Limited (AIM:
MSMN) the hydrocarbon, helium and hydrogen exploration, development
and production company, has received the final Government approval
on the Farmin of its Australian project EP
145, in which Mosman currently holds a 100% interest. Work
now continues to secure all required approvals for the next step of
exploration by Farmin partner, Greenvale Energy Ltd (ASX: GRV /
'Greenvale').
Farmin Agreement
A Farmin Agreement was signed with a
subsidiary of Greenvale in October 2023, where it can earn 75%
interest by funding seismic acquisition and drilling a well (to a
cap of AUD 5.5 million). With the approval from the Northern
Territory government now in place, the Farmin will proceed
accordingly.
Greenvale will earn a 75% working
interest in EP 145 by:
·
Paying AUD 160,000 in cash to Mosman within 5
business days.
· Paying for the
EP 145 Permit Year 3 Work Programme, including seismic acquisition
and processing.
· Funding the Permit Year
4 Work Programme, including drilling one well with a well cost cap
of AUD 5.5 million.
· The Year 3
Work Programme is to be completed by August 2024; the cost of the
seismic acquisition is estimated to be circa AUD 2
million.
· The Year
4 Work Programme is to be completed by August 2025. The cost of
drilling a well depends on many factors including the depth
of a well and cost of drilling rigs at the time of drilling.
The seismic acquisition programme is
planned for mid 2024, followed by drilling in 2025.
Background to EP145
Two wells have been drilled in EP
145 and both encountered hydrocarbons and were not tested for
hydrogen or helium. Most wells in the Amadeus Basin that have been
tested for helium have significant helium content.
A seismic data set was reprocessed
by Mosman and it identified a large structure which may be an
extension of the Mereenie anticline structure. Mosman published a
Prospective Resource estimate for EP-145 in October 2022 (detailed
below).
Prospective Resources
(Bcf)
|
Low
Estimate
|
Best
Estimate
|
High
Estimate
|
Total
Gas
|
12
|
440
|
2,290
|
Helium
|
0.3
|
26.4
|
229
|
Hydrogen
|
0.24
|
26.4
|
275
|
As Greenvale note in their ASX
announcements, helium has "Surging Price
and Fast-Growing Market" and "The global helium market is forecast
to grow from US$5 billion in 2023 to over US$8 billion by 2030"
with a current price of USD 450/Mscf.
Greenvale also notes that "Amadeus
Basin has some of the highest concentrations of helium globally, as
well as confirmed hydrogen accumulations".
· EP145 sits within recognised play fairways for helium and
hydrogen and contains proven hydrocarbon discoveries.
· It
lies on-trend with the producing Mereenie Oil & Gas
Field.
· Successful
helium wells are located along the margins of the Amadeus Basin at
Mt Kitty-1 and Magee-1.
· Existing pipeline infrastructure to Australian East Coast
provides opportunity for early commercialisation.
Andy Carroll, CEO of Mosman
commented: "We are pleased the EP 145 Farmin approvals have now been
received and look forward to this exciting helium and hydrogen
project progressing through its seismic and drilling
programme."
Market Abuse
Regulation (MAR) Disclosure
The information contained within this announcement is
deemed by the Company to constitute inside information as
stipulated under the Market Abuse Regulations (EU) No. 596/2014
('MAR') which has been incorporated into UK law by the European
Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this
information is now considered to be in the public domain.
Enquiries:
Mosman Oil & Gas Limited
Andy Carroll
CEO
acarroll@mosmanoilandgas.com
|
NOMAD and Joint Broker
SP Angel Corporate Finance
LLP
Stuart Gledhill / Richard Hail /
Adam Cowl
+44 (0) 20 3470 0470
|
Alma
Justine James / Will
Merison
+44 (0) 20 3405 0205
+44 (0) 7525 324431
mosman@almastrategic.com
|
Joint Broker
CMC Markets UK Plc
Douglas Crippen
+44 (0) 020 3003 8632
|
Updates on the Company's activities
are regularly posted on its website: www.mosmanoilandgas.com
Notes to
editors
Mosman (AIM: MSMN) is an oil exploration,
development, and production company with projects in the US and
Australia. Mosman's strategic objectives remain consistent: to
identify opportunities which will provide operating cash flow and
have development upside, in conjunction with progressing
exploration of existing exploration permits. The Company has
several projects in the US, in addition to exploration projects in
the Amadeus Basin in Central Australia.