Mosman Oil and Gas (MSMN) has set a best estimate for prospective helium resources at the Coyote Wash helium project in Colorado of 1,072 million cubic feet.
The estimate runs across six identified prospects at Coyote Wash, and uses parameters consistent with the recent independent evaluation of the nearby Sagebrush project prepared by Sproule ERCE.
The resource model incorporates known reservoir properties from the Coyote Wash 30-12 well and helium concentration data measured at Mosman's Sagebrush-1 well, located five miles to the southwest.
Coyote Wash lies in an established helium-producing region with proven reservoir deliverability in the Middle and Lower Leadville formations. The Doe Creek field lies approximately 50 miles to the north.
Technical evaluations by Mosman and its partner Four Corners Helium have focused on reinterpretation of vintage well data and reprocessed 3D seismic.
The Coyote Wash 30-12 well, originally drilled in 1985, encountered 258 feet of Leadville carbonates within the Coyote Wash North closure. Test data indicates the well flowed 173 thousand cubic feet per day from 14 feet of stacked dolomite units in the middle Leadville. Although the gas composition was not analysed at the time, the well did show good reservoir properties and deliverability from the Leadville sequence before it was plugged and abandoned.
A detailed petrophysical interpretation of Coyote Wash 30-12 and nearby offset wells was subsequently undertaken by Four Corners Helium to determine key reservoir parameters for resource calculations. Interpretation of the reprocessed 3D seismic has defined six individual prospects at the Leadville level within the project area. Coyote Wash North is located in the upthrown fault block, while the remaining five prospects lie in the southern downthrown block.
These structures have been mapped from high-quality seismic data and form the basis of Mosman's initial prospective resource estimates.
Helium was confirmed located five miles southwest of Coyote Wash 30-12, at Mosman's Sagebrush-1 well, with measured concentrations of 2.7% He.
Regional gas and production data indicate that similar commercial helium concentrations are likely to be present at Coyote Wash, and this value has been used to calculate the prospective helium resources across the six defined structures.
Mosman will now formally engage Sproule to conduct a detailed assessment and certification of the Coyote Wash prospective resources.
This work will provide a third-party validation of Mosman's internal estimates and form the basis for future drilling and development planning.
“Coyote Wash represents another exciting step in Mosman's US helium growth strategy,” said Howard McLaughlin, chief executive of Mosman.
“With six mapped Leadville prospects and best-estimate helium prospective resources exceeding one billion cubic feet, the project has clear scale and upside potential. 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."
View from Vox
Good to get a number for Coyote Wash, and to see it moving on towards an independent evaluation by Sproule. Sproule are known to be fairly conservative in their methods, and so it’s probably prudent for Mosman to follow the Sproule methodology from the outset. Even allowing for this, to be talking of over 1,000 MMcf in a known helium-producing area is a very welcome development, and further enhances Mosman’s positioning as a leading junior helium player.