Mosman Oil and Gas Limited (LON:MSMN) has raised £1.5mln to fund exploration at EP-145 project in Northern Territory, Australia and maintain its stake at 100%.
The oil junior said had considered bringing in a partner at EP-145 but now believes it to be better to carry on exploring itself especially as drilling results in nearby permits have demonstrated the commercial production of hydrocarbons and the presence of significant amounts of helium (up to 6% in Magee-1) and hydrogen.
The work programme for 2021 will not involve any drilling, Mosman said, the money raised will fund an airborne gravity survey, interpreting the data and acquiring seismic towards the end of the year.
John W Barr, Mosman’s chairman, said: "Mosman has always seen the potential in EP-145 and with a global shortage of helium and demand increasing, combined with the opportunity to fund this exciting exploration project, we look forward to the results of the next phase of the exploration programme later this year."
The fundraise will comprise 1bn new shares at a placing price of 0.15p per share with a one for two warrant exercisable at a price of 0.25p.
Elsewhere, Mosman also said the operator of the Falcon-1 well in East Texas has reported that downhole logs indicate water is entering the wellbore through the lowest perforation.
The well continues to produce oil, gas and water. The Operator is preparing an AFE to squeeze cement and re-perforate the same pay zone to attempt to reduce the water flow.
Subject to the results of that workover, the JV may consider completing the well in a higher zone.