Andy Carroll, CEO of Mosman Oil and Gas Ltd (AIM:MSMN), provided a detailed update on the company's strategic pivot towards helium exploration and production. Mosman, listed for about ten years, has significantly cut corporate costs and shifted focus to helium, a high-demand resource crucial for various industries, including semiconductor manufacturing. The company's primary assets are located in Australia and the USA, regions known for high helium content.
Carroll highlighted Mosman's strong position with wells in Australia’s Amadeus Basin, where tests have shown helium and hydrogen content close to 10%. In the USA, the company has announced new ventures in Arizona and Colorado, regions significant for semiconductor production. The recent $60 billion investment by Taiwan Semiconductor Manufacturing Company in Arizona underscores the strategic importance of helium.
The presentation emphasised the financial and operational advantages of focusing on helium, citing its higher market value compared to methane, oil, and gas. Carroll discussed ongoing and future projects, including five wells to be drilled in Colorado by Christmas. He also mentioned the sale of the Stanley oilfield, reflecting the company's strategic shift.
Mosman’s experienced team, including industry veterans from BP and BHP, supports this transition. The company's exploration in the US and Australia is well-funded through farm-out agreements, ensuring no immediate need for additional capital. Carroll underscored the significant potential in their Australian assets and the strategic benefits of their locations in the US and Australia, which offer stable legal and operational environments.
