LONDON (ShareCast) - (Sharecast News) - Mosman Oil and Gas reported progress on the sale of its Australian assets on Wednesday, and outlined new drilling opportunities at its recently-acquired Coyote Wash lease in Colorado.
The AIM-traded company said it had identified a promising prospect in the southwest of Coyote Wash, where an older well previously flowed at 40 barrels of oil per day.

Technical analysis suggested the well was drilled on the edge of an algal mound, making it a strong candidate for follow-up drilling.

Additionally, Mosman said it had interpreted an untested deeper helium target in the subsalt Leadville formation, presenting an opportunity for a dual-target test for both oil and helium.

At the Vecta Helium Project, in which Mosman holds a 20% working interest, operator Vecta Oil and Gas said it had contracted Desert Eagle Drilling to drill five wells.

However, Mosman said it had not yet received an update on the drilling schedule, adding that it expected further information following a meeting with Vecta next week.

The company said it was advancing the sale of its Australian projects, including EP-145, which was being sold to Echelon Resources for AUD 0.4m (£0.2m), subject to government approval.

A 5% helium and hydrogen royalty deed had been finalised, with Mosman retaining an option to re-acquire any area of EP-145 if Echelon ceases exploration or production.

Echelon, which was already drilling and selling gas to the Northern Territory government, planned to acquire seismic data and drill on EP-145, offering a potential fast-track to production.

Separately, Mosman said it had finalised a contract to sell EPA-155 to Westmarket Oil & Gas.

An initial AUD 50,000 deposit had been received, with a further AUD 0.3m due upon permit approval.

"We are pleased to report progress on projects where Mosman operates," said chief executive officer Andy Carroll.

"I am excited by the early identification of attractive prospects in the Sagebrush and Coyote Wash projects with existing seismic, road access, and production infrastructure.

"We understand shareholders are keen to hear updates on the Vecta project and we look forward to providing information when advised by the operator."

Mosman also announced a board leadership change, with Carl Dumbrell appointed as chairman, replacing Nigel Harvey, who would remain on the board as a non-executive director.

The board said Dumbrell, who joined the board in September 2023, would bring expertise in finance and corporate governance, which it expected would support Mosman in its next phase of growth.

At 1157 GMT, shares in Mosman Oil and Gas were down 8.38% at 0.03p.

Reporting by Josh White for Sharecast.com.

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