Mosman Oil and Gas Cheers Advancements in Helium and Hydrogen Project

Mosman Oil and Gas Ltd (AIM: MSMN) has provided stakeholders with a comprehensive update on its ongoing efforts to explore for helium and hydrogen in Australia's Northern Territory. The primary focus of these endeavors is permit EP 145, where the company is diligently progressing through an approvals process to transition into the next phase of exploration. This significant development aligns with Mosman's concurrent efforts to finalize a farm-out partnership with Greenvale Energy. This partnership, if solidified, could grant Greenvale up to a 75% stake in the project by financing seismic data capture and well drilling expenses, with a cap set at A$5.5 million. Currently, awaiting ministerial approval stands as the final hurdle before this collaboration can proceed.

Andy Carroll, Chief Executive Officer of Mosman, expressed contentment with the ongoing advancements in EP 145, highlighting the promising prospects for helium and hydrogen in conjunction with the confirmed presence of hydrocarbon resources. Recent engagements with Northern Territory departments have yielded positive outcomes, reaffirming the trajectory of the project. Notably, the break deadline outlined in the original agreement with Greenvale has been extended to April 30, providing both entities with additional time for thorough deliberations.

The spotlight on EP 145 intensifies as exploration endeavors increasingly pivot towards specialty resources such as helium and hydrogen, driven by diverse industry demands. Although historical drilling activities in the 1980s uncovered hydrocarbons within the region, the potential presence of helium and hydrogen remained unexplored. However, subsequent identification of gas sources within the basin during the mid-2000s, coupled with Mosman's reprocessing of seismic data, unveiled a significant geological structure teeming with untapped potential for helium and hydrogen resources. Prospective resource estimates released by Mosman in October 2022 underscored the substantial reserves of gas, helium, and hydrogen within the area.

In collaboration with Greenvale, Mosman has outlined plans to commence a seismic acquisition program in the first half of 2024, aimed at pinpointing an optimal drilling location by August, thus paving the way for subsequent drilling operations. In addition to these operational strategies, Mosman is closely monitoring the rapid growth trajectory of the global helium market. Projections indicate a significant expansion from a market value of US$5 billion in 2023 to over US$8 billion by 2030, driven by escalating prices and soaring demand. Situated strategically in the northern reaches of Australia within a proven play fairway, EP 145 holds pivotal significance, leveraging its proximity to existing pipeline infrastructure intricately linked to export routes in Asia. Mosman anticipates an opportune moment for early commercialization should the exploration efforts in the field yield favorable outcomes.