Mosman Oil and Gas Ltd (AIM:MSMN) told investors it has acquired an 82.5% working interest in the Sagebrush helium project in Colorado.
The transaction, worth $630,000, is being financed from Mosman’s existing cash reserves.
Sagebush is a 10,000-acre lease, held by production, with seven active oil wells on the property with gross production of approximately 40 barrels per day.
It’s adjacent to Mosman’s Coyote Wash project, and it’s believed to have the potential for helium resources.
"The Sagebrush acquisition along with the Coyote Wash project is the fulfillment of a key goal for Mosman's strategic shift toward helium exploration, development and commercialisation,” chief executive Andy Carroll said in a statement.
“Acquisitions were a key rationale in the September 2024 capital raise and these two projects deliver on this objective and the acquisition costs can now be funded from cash reserves.”
Carroll added: “The Sagebrush acquisition brings a large attractive area for exploration of helium and has steady oil production with minimal decline supplying revenue as well as holding the acreage for helium and hydrocarbon exploration and development.
“This is an area with production infrastructure where one well can explore for both helium and hydrocarbons.
"Mosman now has a very strong diversified portfolio of attractive helium and hydrocarbon assets at various stages of maturity."
The company now plans to review existing data and acquire additional seismic surveys to identify new drilling prospects.
Future programmes may see exploration for both helium and hydrocarbons, in a single well, and the company may potentially seek farm-out partners to support project funding.