Mosman Oil and Gas Ltd (AIM:MSMN) unveiled its first resource estimate for the Sagebrush Project in Colorado on Thursday, highlighting the potential for a staged, fast-track development of helium and hydrocarbon production.
The AIM-listed explorer said it has identified best estimate contingent resources of 205 million cubic feet of helium and 1.7 billion cubic feet of hydrocarbon gases at the site.
The figures are based on a report from Four Corners Helium, dated 5 May, which used seismic data to map a structural closure of around 585 acres. The report estimates initial gas in place at 18.4 billion cubic feet, with 11 billion cubic feet deemed potentially recoverable.
Mosman said the presence of existing wells, prior flow testing, local oil infrastructure and an established gas pipeline all support the potential for early-stage commercialisation.
The company added that further upside exists through additional exploration targets identified at both the Sagebrush Project and the adjacent Coyote Wash acreage.
The findings mark a step forward in Mosman’s shift towards helium and hydrogen as part of its broader energy transition strategy.
CEO Andy Carroll told investors: "We have all the key ingredients for assessing future development potential with an existing well, gas composition, production facilities and a gas pipeline.
"We are now working on a development feasibility study that will likely include recompletion of the well and an extended flow test, as well as design of production facilities for selling helium via road tanker or pipeline and using the hydrocarbons for power generation and/or sale.
"In addition, at the nearby and separate Coyote Wash Project, the structures at its various Leadville prospects appear on 3D seismic to be larger than the structure mapped at the Sagebrush Project.
"We will now also commence work on a separate internal resource estimate for the Coyote Wash leases using the Sagebrush data. Given their proximity, these two Projects represent a compelling combination given the data, logistics and potential development synergies."