Mosman and Gas (MSMN) has engaged Sproule Incorporated to provide an independent estimate of helium resources at the Sagebrush project in Colorado, USA.
Mosman holds an 82.5% working interest in Sagebrush.
The engagement of Sproule follows the Mosman’s internal assessments and the announcement in May of maiden contingent resources based on a report from Four Corners Helium (FCH).
The FCH report estimated Sagebrush to contain 205 million cubic feet (mmcf) of helium contingent resources net to Mosman, and 1.683 billion cubic feet (bcf) of net hydrocarbon contingent resources.
Sproule's scope of work includes a comprehensive review of geological and engineering data, including historic gas sample analyses from the Sagebrush-1 well, which indicated a gas composition of 2.76% helium, 19.5% methane, and other gases.
The independent assessment is expected to provide estimates of both contingent and prospective helium resources, further validating and refining Mosman's internal estimates to support future development and commercialisation.
The company also intends to commence a 3D seismic survey over the Sagebrush project area this quarter. This seismic program, which is expected to cover approximately 16 square miles, will provide detailed subsurface mapping, enabling Mosman to define high-potential drilling targets.
Meanwhile, Mosman continues to advance technical planning for a four-to-six week extended production test of the Sagebrush-1 Leadville Formation at various intervals from 7,200 feet to approximately 7,400 feet.
The extended production test, which is targeted for the fourth quarter of 2025, will provide valuable data on production potential, particularly for helium and associated hydrocarbons, and will assist in assessing the commercial viability of the project.
Before the extended production test can begin, several prerequisites must be completed, including the finalising of bonding arrangements and completion of the transfer of ownership of the project.
These planned operations at Sagebrush will be funded from the company's existing cash resources.
"Engaging Sproule, acquiring the 3D seismic survey, and advancing the extended production test at Sagebrush-1 are pivotal steps in our helium strategy,” said Mosman’s interim chief executive Howard Mclaughlin.
“These initiatives are designed to validate our resource estimates, de-risk the project, and provide the data needed to advance towards commercialisation. We are committed to executing these plans efficiently and safely, with the goal of unlocking the full potential of the Sagebrush project."
View from Vox
Good to see further progress at Sagebrush, which is shaping up to be a significant helium and hydrocarbon prospect. Mosman has the cash to be getting on with work on the ground, as well as paying for independent resource evaluation work. This should allow for plenty of newsflow in the months ahead, especially as and when drilling gets underway. And drilling, as seasoned investors know well, almost always provides a fillip to a company’s share price.