- Mosman Oil and Gas Limited (DI)
- 03 February 2025 11:48:02
Source: Sharecast
The AIM-traded firm said the effective date of the transaction was 1 January.
It said the Sagebrush-1 well, drilled in 1984, initially produced over 600 barrels per day of oil and had since yielded more than 300,000 barrels across nine wells, seven of which remained active.
Annual oil production from the site remained stable at around 17,000 barrels since 2010.
The project area was supported by existing infrastructure, including roads, well sites, separators, storage tanks, and a pipeline that is currently shut in.
Mosman said it was advancing exploration and development activities at Sagebrush, including reprocessing 2D seismic data and acquiring new 3D seismic data over an estimated six to eight square miles in the southern portion of the project.
The cost of the activities was expected to be about $0.5m, funded from the company’s existing cash resources.
Several oil and helium prospects had been identified in the Ismay and Leadville formations, with the permitting process for further exploration and drilling being expedited.
Mosman said it was targeting initial drilling later in 2025, though approval timelines remained uncertain.
“We are pleased to finalise this important acquisition where we believe there is additional oil potential and significant helium potential,” said chief executive officer Andy Carroll.
“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 programme.”
At 1127 GMT, shares in Mosman Oil & Gas were up 15% at 0.05p.
Reporting by Josh White for Sharecast.com.
