Mosman Oil starts drilling well at Bard lease

(Sharecast News) - Mosman Oil and Gas announced on Wednesday that it has begun drilling the Richardson TH well at the Bard lease within its Vecta Project in Colorado - the second of five planned wells targeting helium and hydrocarbons in the region.

The AIM-traded firm said the well would test the Lyons Sandstone formation to a planned depth of 725 feet.

It said the Vecta Project lies in Las Animas County, near known helium-producing fields including Red Rocks and Blue Star Helium's Galactica project.

Nearby offset wells had reported helium concentrations of up to 11%, with the adjacent Texaco Cynthia True-1 well flowing 8.8% helium from the Lyons formation.

Gas concentrations, including helium, would be measured at various intervals during drilling, with wireline logging at total depth to assess reservoir and fluid properties.

Mosman holds a 90% working interest in the Bard lease, with Vecta retaining a 10% carried interest and continuing as operator at no cost to Mosman.

Under the agreement, Mosman had the option to assume operatorship, while Vecta retained a buyback right at four times drilling costs.

"The drilling at the Bard lease area of the Vecta project is an exciting opportunity to test a second helium target in an area of proven helium development and production," said chief executive officer Andy Carroll.

"The low-cost drilling of these wells enables data to be obtained quickly and at very reasonable cost."

The campaign's first well was currently being drilled at the Billy Goat lease, with each well targeting distinct structural closures across the project area.

At 1358 BST, shares in Mosman Oil & Gas were up 4% at 0.04p.

Reporting by Josh White for Sharecast.com.