Business
WI Increased to 20% of Vecta Helium Project
WI Increased to 20% of Vecta Helium Project.
About this update from Quantum Helium Limited
[{"type":"text","content":"\n\n23 July 2024\nMosman Oil and Gas Limited\n(\"Mosman\" or the \"Company\")\nWI Increased to 20% of Vecta Helium Project\nMosman Oil and Gas Limited (AIM: MSMN) the helium, hydrogen and hydrocarbon exploration, development and production company, has acquired a further 10% working interest (\"WI\") in the Vecta Helium Project in Las Animas County, Colorado, USA from Vecta Oil and Gas Ltd, increasing Mosman's total WI in the project to 20%. Vecta will continue to own the remaining 80% WI and operate the project.\n \nAs set out in Mosman's announcement of 3 June 2024, the Vecta Helium Project includes c 48,000 leased acres in Colorado, with five identified helium prospects. The acreage has now increased to 51,000 acres. The exploration strategy is to drill an exploration well on each of the five prospects in 2024. Four of these wells already have approvals in place. Following a successful exploration programme, the next step would be to acquire seismic and drill helium production wells.\n \nThe consideration for the additional 10% WI is 650,000,000 shares (this number was agreed based on the equivalent of US$500,000 at the share price on 19 July which is now worth circa US$587,000 based on Mosman's closing share price on 22 July of 0.07p per share) and is equal to approximately 4.29% of Mosman's enlarged issued share capital. \n \nHelium production in Las Animas County includes the historic Model Dome field which recorded 7-11% helium content. Other companies active in the area include Desert Eagle Operating producing helium at Red Rocks, and Blue Star Helium (ASX:BNL|OTCQB: BSNLF) developing helium discoveries at Galactica/Pegasus.\n \nMosman intends to fund its 20% share of the five exploration wells, estimated to cost cUS$259,000 per well (gross) which equates to US$ 52,000 net cost to Mosman for its 20% share. Mosman's drilling costs for five wells is cUS$259,000, which would bring the total investment to cUS$1,259,000, of which US$659,000 remains to be funded from cash reserves (US$100k having already been paid) along with issuing 650,000,000 shares for the second 10% WI noted above. \n \nIt should be noted that whilst Mosman is not obliged to fund the exploration wells, if it does not, it would lose its interest in that prospect area (Area of Mutual Interest or \"AMI\"). At the time of d...