Business
Operations Update and Placing
Operations Update and Placing.
About this update from Quantum Helium Limited
[{"type":"text","content":"\n\n29 November 2023\nMosman Oil and Gas Limited\n(\"Mosman\" or the \"Company\")\nOperations Update and Placing\nMosman Oil and Gas Limited (AIM: MSMN) the hydrocarbon, helium and hydrogen exploration, development, and production company, provides a project update on its US and Australian projects and confirms it has today raised £250,000 (before expenses) by way of a placing of 2,000,000,000 ordinary shares (the \"Placing\").\nReview of Business Plan and Funding\nThe new Board has considered the business strategy and sees the way forward as adding value by continuing to selectively develop producing oil assets in the US, then monetising them, and maximising the helium, hydrogen and hydrocarbon opportunity at the exploration permits in Australia.\nIn Australia, the recent farmin agreement on EP145 with Greenvale Gold Pty Ltd (\"Greenvale\"), which remains subject to completion, provides a reference see through valuation of the EP 145 asset; based on the farmin expenditure of at least circa AUD7.5 million to earn a 75% interest in the lease indicates the Company's remaining 25% has significant value.\nIn the USA, the Cinnabar leases are held by production, have Reserves and significant value that can be realised with further technical work and investment. The Board considers that given the upside potential at Cinnabar, this should be the focus area in 2024.\nAt Stanley, jet pumps have demonstrated that higher flow rates are possible. The surface equipment has been modified and is now expected to be more reliable. Whilst it is too early to provide meaningful production data, the modified system should result in higher production with a target of 100 boepd (gross) .The two obvious ways to commercialise this asset are through ongoing cashflow, or through a future sale of this asset once production has been optimised. The Board believes there is currently strong local demand for oil production assets and based on general industry valuations of Texas assets based on boepd, the market value of Stanley (and associated leases) is potentially significant in the context of the current market capitalisation of the Company. If a decision were taken on a future sale of Stanley, it has the potential to provide capital for re-investment in other growth projects, for example at Cinnabar.\nCost control remains a focus of the Board, and Australia...