Mosman Oil & Gas Ltd on Tuesday reported disappointment that drilling had not yet started on its latest North American venture, but noted ‘two key approvals’ for a new project in central Australia.
The New South Wales, Australia-based mining company, which focuses on helium, hydrogen and hydrocarbon, previously indicated that its Vecta Helium Project would start drilling in 2024.
Mosman, which has 20% working interest in the site, has since clarified this will not be the case, due to failure to secure a rig to drill the five wells in Colorado, USA. The company was unable to provide ‘a definite schedule’, but noted drilling would commence within a few days of a rig being contracted.
This news follows Mosman’s announcement in November that it would focus on building the company’s helium portfolio, particularly in the US, to boost cash flow.
Tuesday brought some positives for Mosman investors, however, as the company noted approval grants for its EP-145 project in the Amadeus Basin, Central Australia. Mosman upped its stake in the venture to 100% from 25% back in October, when the company acquired Greenvale Energy Ltd’s working interest in the helium and hydrogen project.
Mosman said EP-145’s environment management plan was cleared, and the project as a whole granted a clearance certificate by the Aboriginal Areas Authority.
The news follows months of fundraising on Mosman’s part to finance increased helium production. Mosman reported revenues of A$186,232 in the year to June 30, down from A$572,174 the year prior. The company noted annual gross production halved to 47,245 barrels of oil equivalent in 2023 compared with 86,933 the year prior.
Chief Executive Officer Andy Carroll said the company was ‘pleased with the progress being made on EP-145’ but ‘disappointed’ by delays in the US.
‘Notwithstanding this, Vecta remains remains attractive due to the low cost of drilling, the high helium concentrations produced in this part of Colorado and the proximity to infrastructure,’ Carroll added.
Mosman Oil & Gas shares closed 5.0% lower at £0.029 each on Tuesday afternoon in London.
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