Mosman Oil and Gas Ltd (AIM:MSMN) shares advanced on Monday after it announced a best-estimate 2U gross prospective helium resource of 1,072 MMcf across six prospects at its Coyote Wash project in Colorado.
Mosman said that its internal estimate draws on reinterpretation of vintage well data and reprocessed 3D seismic - including the prior Coyote Wash 30-12 well, which encountered 258 feet of Leadville carbonates and flowed 173 Mcf/d on tests.
“Coyote Wash represents another exciting step in Mosman's US helium growth strategy," said chief executive Howard McLaughlin.
"With six mapped Leadville prospects and best-estimate helium prospective resources exceeding one billion cubic feet, the project has clear scale and upside potential.”
Mosman now plans to engage Sproule ERCE to assess and certify the Coyote Wash prospective resources.
"The combination of strong reservoir characteristics, proven regional helium charge, and proximity to our Sagebrush discovery provides confidence that Coyote Wash could become a significant addition to Mosman's portfolio.
"Following Sproule ERCE's successful independent verification at Sagebrush, we look forward to engaging them again to confirm and refine these results as we advance towards drilling and development."
Also, the company revealed to investors its plan to rebrand the company to better reflect its future as a helium-focused operator. It proposes to rename as Quantum Helium Limited, with a new AIM-market ticker 'QHE'.
In London, Mosman shares gained more than 7% changing hands at 0.034p.