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Mosman Oil & Gas Ltd on Monday said it has completed the acquisition of an 82.5% working interest in the Sagebrush Project in Colorado for $630,000.
Shares in Mosman were up 5.0% to 0.042 pence in London on Monday morning.
The New South Wales, Australia-based mining company, which focuses on helium, hydrogen and hydrocarbons said the interest will be held by wholly-owned subsidiary Mosman Helium LLC, effective from January 1.
Sagebrush, adjacent to Mosman’s Coyote Wash project, features seven producing oil wells with a gross annual rate of around 17,000 barrels.
The company said the acquisition of between 6 to 8 square miles of new 3D seismic data in the southern portion of the project is being planned.
Mosman said several leads have been identified on the site including helium prospects.
It said the permitting process for the 3D acquisition and drilling will be fast-tracked, starting with environmental and historical preservation surveys.
The firm said it is targeting to drill later in 2025, but noted that it cannot predict the length of the approval process which can take several months.
Chief Executive Officer Andy Carroll said: ‘We are pleased to finalise this important acquisition where we believe there is additional oil potential and significant helium potential. It is a great combination with the adjacent Coyote Wash project 100% owned by Mosman.
‘The oil revenue from the producing wells will help fund the ongoing exploration and development program.’
Mosman said on Monday it has now entered into a formal sale and purchase agreement with Echelon Resources Ltd regarding the sale of EP-145.
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