Mosman Oil's Vecta Termination: A Drilling Programme Debrief

Mosman Oil exits the Vecta Helium Project after disappointing drilling results, shifting focus to Sagebrush and Coyote Wash in Colorado.

Mosman Oil's Vecta Termination: A Drilling Programme Debrief

Mosman Oil and Gas Limited has called it quits on its drilling campaign at the Vecta Helium Project after the first three wells didn't pan out as hoped. Let's dive into what happened and what's next for the company.

The Vecta Drilling Programme: A Quick Recap

The campaign targeted the helium-rich Lyons formation, but the BARD and Garcia prospects hit the formation deeper than expected, finding water instead of the anticipated structural traps. Turns out, surface mapping wasn't a reliable guide in this relatively unexplored region. Mosman managed to exit the Billy Goat AMI by trading its cost commitments for a royalty on future revenue.

The Bottom Line: Minimal Financial Impact

The total cost to Mosman for the drilling across the campaign was US$214,931. The company exits the program with no further payments.

Why Vecta Didn't Work Out

The Lyons formation, while typically containing 2-3% helium (with historical highs up to 11%), had low-pressure gas and flow rates. This requires super-high helium concentrations to justify the extensive development needed for commercial viability. Mosman's move to exit reflects a strategic decision to cut losses in a high-risk area.

Looking Ahead: Sagebrush and Coyote Wash

Howard Mclaughlin, Interim CEO of Mosman, stated the company will now focus on the Sagebrush and Coyote Wash helium projects in Colorado, where they see significant potential for growth. Smart move, if you ask me. Sometimes, you've just gotta cut your losses and run towards greener pastures.

Final Thoughts

So, Mosman Oil's Vecta Helium Project didn't quite hit the mark, but hey, that's the oil and gas game! Onwards and upwards to new opportunities in Colorado. Here's hoping they strike helium gold in Sagebrush and Coyote Wash!