Mosman Oil and Gas Ltd (AIM:MSMN) CEO Andy Carroll talked with Proactive about the company’s latest developments, including the reacquisition of EP-145 in the Northern Territory of Australia.
Carroll highlighted that the growing gas shortage and helium market opportunities made this a strategic move. Also, he noted that a favorable political shift in the Northern Territory is expected to further benefit the project’s progress.
Proactive: Andy, very good to speak with you. You're out with news today that you're taking back control of EP-145 in the Northern Territory. What's the opportunity now, and why not proceed as you were?
Andy Carroll: The opportunity arose, and we're very happy to seize it. The value of this project has increased over the last 12 months. The Northern Territory is seeing a gas shortage and increased gas prices. So as well as progressing helium exploration, helium will be produced along with hydrocarbons. The combination of both drives the economics.
Proactive: So, why the change in partnership with Greenvale?
Andy Carroll: Our farming partner has reorganized. Twelve months ago, Greenvale had a bigger market capitalization than we did, so it made sense to tap into their financial resources. But things have changed. We now have a bigger market capitalization than Greenvale and the cash reserves to fund the year-three program.
I’m very pleased to take back 100% of this project. Different parties have slightly different focuses, and we have spent a lot of time gaining a deep understanding of this project. We know where we want to target and what we want to do.
Proactive: So, what’s the next step for EP-145?
Andy Carroll: We're very pleased to take back operatorship, hold 100% ownership, and move EP-145 forward in this promising environment. It’s not just about the rocks but also the gas pricing. Recently, the Northern Territory elected a very pro-business, pro-gas government, and we look forward to working with them.
Proactive: You now have a two-country focus with Australia and North America. Can you take us through the helium opportunities you're seeing and what's coming up ahead for Mosman?
Andy Carroll: Helium is a great space to be in. We've pivoted from oil and gas into helium. Our first entry in the USA is the Vector Project, which is a low-cost drilling venture, and drilling will start before the end of the year. In the U.S., there’s enormous investment in semiconductor manufacturing in Utah and Arizona, which drives demand for helium.
Helium pricing is very strong, and this area hasn’t been well explored because it was government-owned until recently. Now, with helium reserves being run down, there’s a rush to find the next source.
Proactive: How does Mosman plan to capitalize on this opportunity?
Andy Carroll: As a small cap company, we have found really good opportunities in the helium sector. We have a shortlist of business developments we're working on, with capital reserved for these deals following the recent capital raise. We also see progress with EP-145 in Australia, seismic acquisition, and approvals for the next drilling at the Vector Project in the U.S. Business development in the U.S. will bring good news soon.
We are well funded following the exercise of warrants, the sale of Stanley, and the recent capital raise. This also frees up our team to focus on the U.S. helium market. We've also brought on board experienced consultants like Tim Reinhardt in Colorado and Dr. Julie Dawes in Australia to strengthen our team.