Mosman Oil and Gas Ltd (AIM:MSMN) shares surged 11% on Thursday after the company revealed its maiden resource estimate for the Sagebrush Project in Colorado, signalling early potential for a fast-track development of helium and hydrocarbon production.
The AIM-listed firm reported best estimate contingent resources of 205 million cubic feet of helium and 1.7 billion cubic feet of hydrocarbon gases, based on seismic data analysis by Four Corners Helium.
The study identified a structural closure of around 585 acres, with an estimated 18.4 billion cubic feet of gas in place and 11 billion recoverable.
Mosman said existing infrastructure, including wells, oil facilities and a gas pipeline, positions the site for near-term development. A feasibility study is underway and may involve recompleting the well and designing facilities for helium sales and power generation.
The company also sees additional upside from its neighbouring Coyote Wash acreage, which is now being assessed using data from Sagebrush.
The shares were changing hands for 0.061p.