Mosman Oil and Gas Ltd's (AIM:MSMN) American helium venture is now advancing, as a rig contractor has signed up to drill five wells at the Vecta project.
The AIM-listed company said Vecta Oil and Gas, the project operator in which it has a 20% stake, has hired Desert Eagle Operating LLC which is expected to begin drilling “as soon as possible”, once routine matters and weather conditions allow.
"We are pleased the drill contract has now been signed on the Vecta project and to see this progressing,” chief executive Andy Carroll said in a statement.
“The company is also on track to finalise this important Sagebrush acquisition where we believe there is significant helium potential and additional oil potential and where oil revenue from the existing producing wells will help fund the ongoing exploration and development program."
Elsewhere, at the Sagebrush Project, where Mosman intends to acquire an 82.5% working interest, the company noted that it has now completed due diligence.
Work to complete the transaction is now advancing, Mosman said, and is due to be sealed in the coming days.