Mosman Oil and Gas Ltd (AIM:MSMN) CEO Andy Carroll talked with Proactive's Stephen Gunnion about a significant milestone at the company’s Sagebrush-1 well, located in the Leadville formation. Carroll revealed that historic gas sample data from 1993 confirms the presence of helium at a concentration of 2.7%, alongside 20% methane. This discovery enables Mosman to transition from exploration to evaluating the commercialisation of the helium resource.
“We were actually looking at a possible work-over at the existing well to get a gas sample, but we've got about 30 boxes of data from the previous operator and found in those boxes the original gas sample report,” Carroll said. The gas flow rate from the earlier test was in the range of 152 to 163 thousand cubic feet per day, indicating potential for commercial development.
Carroll also noted the strategic benefit of methane being present alongside the helium. The methane could be used for on-site power generation to support helium processing, reducing dependence on external power sources. Additionally, existing infrastructure—including a mothballed pipeline and nearby helium plants—could significantly streamline transportation and processing.
Looking ahead, Mosman is preparing feasibility studies and engaging with the Ute Mountain Ute Tribe and regulatory authorities to conduct further 3D seismic work. These efforts aim to refine drilling plans across the Sagebrush area and adjacent Coyote Wash leases.
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