Mosman Oil and Gas Ltd (AIM:MSMN) announced it has opted to exit the Vecta helium exploration venture early, having drilled three of five proposed targets.
It comes after the third well, on Friday, disappointed with its initial results.
Mosman said the region’s limited subsurface data made surface mapping unreliable.
Typically, the Lyons formation (targeted in the Vecta project) holds helium concentrations of 2-3%, Mosman said, but noted that these targets require high grades to justify commercial development (due to low gas pressure and flow rates).
The company incurred no costs related to the final two planned wells, and it noted that total expenditure on the campaign was US$214,931.
"We thank our partners for enabling Mosman to exit the programme early with minimal cost,” Mosman interim chief executive Howard Mclaughlin said.
“We now look forward to focusing our efforts on the larger opportunities at our Sagebrush and Coyote Wash helium projects in Colorado, where we see significant potential for growth."
In London, Mosman shares were down 5% at 0.023p each in Thursday’s trading.