Mosman Oil & Gas Ltd, an Australian mining company focused on helium, hydrogen, and hydrocarbons, has encountered delays in its North American operations. while securing crucial approvals for a project in central Australia.

The company had previously announced plans to commence drilling at its Vecta Helium Project in Colorado, USA, by the end of 2024. However, due to the project operator's failure to secure a drilling rig, these plans have been delayed. The drilling is now scheduled to begin in 2025, the company announced in a statement.

Mosman, which holds a 20% working interest in Vecta, emphasized that drilling could commence within a few days of a rig being contracted. Despite the setback, the company highlighted the project's potential, citing low drilling costs, high helium concentrations, and proximity to existing infrastructure.

Meanwhile, Mosman secured two key approvals for its EP-145 project in the Amadeus Basin, Central Australia. The company acquired Greenvale Energy Ltd's working interest in the project in October, increasing its stake to 100%. The recent approvals include the Environmental Management Plan and the Aboriginal Areas Protection Authority (AAPA) Clearance Certificate.

These developments come as Mosman focuses on expanding its helium portfolio, particularly in the US, to boost cash flow. The company reported a decline in revenue and oil production in the year to June 30, 2023.

CEO Andy Carroll expressed disappointment over the Vecta delays while acknowledging the progress made on the EP-145 project. He stated, "We are pleased with the progress being made on EP-145 where Mosman is the operator. We are disappointed that drilling has not already started on the Vecta project, where we are not the operator, as this was advised as a reasonable expectation when the project was acquired in June this year. Notwithstanding this, Vecta remains attractive due to the low cost of drilling, the high helium concentrations produced in this part of Colorado and the proximity to production infrastructure."

Mosman Oil & Gas is an Australian company having offices in Australia and US. It remains committed to its core strategy: identifying and developing projects within the helium, hydrogen, and hydrocarbon sectors that generate sustainable cash flow while simultaneously advancing exploration activities across existing permits.  

Mosman Oil & Gas has been actively raising capital in recent months to fund an increase in helium production. However, the company's financial performance in the year ending June 30, 2023, showed a decline in revenue compared to the previous year, decreasing from A$572,174 to A$186,232. Furthermore, annual gross production experienced a significant drop, halving from 86,933 barrels of oil equivalent in 2022 to 47,245 in 2023.

The Company's portfolio currently encompasses three projects in the United States and two exploration projects located within the Amadeus Basin of Central Australia.