Mosman Oil and Gas Confirms Helium Discovery at Sagebrush-1 Well
Why we think this is very good
The RNS announcement provides positive news about the discovery of commercial quantities of helium at the Sagebrush-1 well, which could be a transformational event for Mosman Oil and Gas. The well's helium content and flow rates indicate the potential for commercial helium production, with the added benefit of methane production. This discovery could lead to significant revenue and value generation for the company, justifying a 'VERY_GOOD' sentiment score.
Key Points
- Project review confirms presence of helium and methane at Sagebrush-1 well in Colorado, USA
- Gas sample analysis shows 2.76% helium content and commercial flow rates
- Well could be recompleted and converted to commercial helium production within 12 months
- Helium production could be supplemented by methane sales, providing additional revenue streams
Summary
Mosman Oil and Gas Limited (AIM:MSMN) has announced that a project review has confirmed the presence of helium and methane at its Sagebrush-1 well in Colorado, USA. The review of historic gas sample data found that the well could be a commercial producer of helium, with the additional benefit of methane production. The company plans to conduct a production feasibility study and explore options for separating and transporting the helium to market, potentially within the next 12 months. This discovery could be a transformational event for Mosman, as it could lead to significant revenue and value generation.