Mosman Oil and Gas advances helium and hydrogen project with Greenvale Energy
Mosman Oil and Gas Limited (AIM: MSMN), a leader in hydrocarbon, helium, and hydrogen exploration and production, has announced receiving final government approval for the Farmin of its project EP 145 in Australia. This approval marks a significant step forward in collaboration with Farmin partner, Greenvale Energy Ltd (ASX: GRV), who will now proceed with exploration activities including seismic acquisition and drilling.
Under the terms of the agreement signed in October 2023, Greenvale will earn a 75% working interest in EP 145 by fulfilling several key financial and operational commitments. These include a payment of AUD 160,000 to Mosman within five business days and covering the costs of seismic acquisition and processing for the Permit Year 3 Work Programme, estimated at around AUD 2 million. Additionally, Greenvale will fund the Permit Year 4 Work Programme, which includes drilling one well with a cost cap of AUD 5.5 million, slated for completion by August 2025.
Located in the Northern Territory’s Amadeus Basin, EP 145 has shown significant potential in early explorations. Two wells previously drilled at the site encountered hydrocarbons, with the region known for its high concentrations of helium and confirmed hydrogen accumulations. The proximity of EP 145 to the Mereenie Oil & Gas Field and its alignment with known play fairways for helium and hydrogen enhance its strategic value.
Mosman has highlighted the potential of EP 145 based on reprocessed seismic data which suggests the presence of a large structure possibly extending from the Mereenie anticline structure. This geological advantage positions EP 145 as a promising site for further exploration and potential commercialization, especially considering the existing pipeline infrastructure that connects to the Australian East Coast.
The global market for helium is experiencing significant growth, projected to increase from US$5 billion in 2023 to over US$8 billion by 2030, with a current price of USD 450/Mscf. This surge in demand and price reflects the increasing importance of helium in various high-tech applications. Additionally, the recognition of hydrogen as a crucial component of green energy solutions further enhances the commercial prospects of discoveries at EP 145.
With the government approvals in place, the seismic acquisition program is scheduled for mid-2024, followed by drilling activities in 2025. These steps are critical in confirming the potential of EP 145 to host viable helium and hydrogen reserves, which could significantly impact the energy market and Mosman’s growth.
Andy Carroll, CEO of Mosman, expressed enthusiasm about the advancements, stating, “We are pleased the EP 145 Farmin approvals have now been received and look forward to this exciting helium and hydrogen project progressing through its seismic and drilling programme.”