Mosman Oil and Gas Ltd (AIM:MSMN) is continuing its preparations for exploration in Australia, today telling investors it has committed to the acquisition of long lead items essential for seismic exploration.
It follows the recently announced partnership agreement with Greenvale, which is awaiting ministerial approval.
"We are pleased to see continued progress in EP 145 where we see potential for helium and hydrogen,” Mosman chief executive Andy Carroll said in a statement.
Mosman’s plan for 2024 is to conduct the seismic data acquisition and analysis to support the selection of a well location by August.
Ahead of getting boots on the ground, Mosman today also communicated estimated prospective resources of some 26 billion cubic feet (bcf) of helium and 26 bcf of hydrogen for the as yet untested exploration acreage.
The explorer also highlighted what it sees as supportive commodity economics favouring the project.
The global helium market is on an upward trajectory, Mosman said, pointing to an expected increase in market value from US$5 billion in 2023 to over US$8 billion by 2030.
Such predictions bode well for Mosman’s EP 145 licence, in Australia’s Amadeus Basin, which the company believes is prospective for high helium concentrations and hydrogen accumulations.
Additionally, the project’s proximity to the Merenie oil & gas field and existing pipeline infrastructure to the Australian East Coast is seen as a further boon to the project's potential commercial viability should significant volumes of gas be discovered.