Mosman Oil and Gas Ltd (AIM:MSMN) told investors it has, as previously announced, increased its interest in the Vecta helium project in the USA.
The company is also reviewing additional opportunities to optimise its helium exploration portfolio.
On Monday, the AIM-quoted company released an update on its capital structure and helium project. It noted that Mosman recently issued shares from warrant exercises representing an additional capital contribution of £475,000.
Meanwhile, it also issued 650 million shares to Vecta Oil & Gas Ltd in the deal to increase its stake in its partner – this gave Vecta a 4.3% shareholding.
Mosman chief executive Andy Carroll in a statement added: “Cash received from exercise of warrants has strengthened the balance sheet.
“It is encouraging to see the underlying demand for new shares in Mosman where 2,900,000,000 were issued in the last three months and absorbed by the market whilst the share price has approximately tripled in price.
"The Mosman team's review of global helium projects highlighted key factors to be high helium content, low drilling costs and proximity to helium infrastructure.
“The Vecta project in Colorado, USA, met these criteria and we have increased our interest in the Vecta project from 10% to 20%.
“It was also an important factor that Vecta was prepared to take Mosman shares rather than cash to align our interests and enable the Group to continue to have exploration costs fully funded from existing cash reserves.”
Mosman also noted that joint venture partner at the EP(A) 155 licence, in Australia, Georgina Energy PLC (LSE:GEX) has raised £5 million and, in its associated prospectus, highlighted “significant prospective resources of helium, hydrogen, and hydrocarbons.”