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Highlights

  • Mosman Oil and Gas confirms acquisition interest in its Billy Goat helium project in Colorado.

  • Drilling at the site has reached 720 feet, hitting a secondary target, with operations ongoing towards the main target.

  • The company recently raised its project stake to 90% and is now considering an early exit through a potential sale.

Mosman Oil and Gas Ltd (LSE:MSMN) has announced that it is considering a potential sale of its Billy Goat helium project in Colorado, following an approach by a local helium company expressing interest in acquiring the asset. The development comes just a week after drilling began at the site.

According to a company statement released on Tuesday, drilling at the Billy Goat well has already reached a depth of 720 feet, successfully confirming the presence of a secondary exploration target. Drilling is continuing as planned towards the main helium-bearing formation.

Despite the active operations, Mosman revealed that discussions have taken place with a regional helium company that has expressed interest in taking over the project. The company said the offer is now under “serious consideration” by management, who view it as a potentially expedited route to production and commercialisation of helium resources identified at the site.

"We are pleased that this potential opportunity has arisen,” Mosman CEO Andy Carroll said in a statement. “Mosman will only agree to a change that it considers more favourable to the company and shareholders. We look forward to providing further updates in due course."

The prospect of a swift exit follows a strategic move by Mosman earlier this month, when the company finalised an agreement with partner Vecta Oil & Gas. Under the terms, Mosman increased its ownership in the Billy Goat project from 20% to 90%, in exchange for covering all drilling and development costs related to the well.

Tuesday's news triggered modest market movement, with Mosman shares trading at 0.047p, reflecting a 3% increase on the day. Over the past month, the company's stock has gained around 17% and peaked at 0.07p during that period.

Mosman Oil and Gas, which recently shifted its operational focus toward helium exploration in the United States, currently holds a market capitalisation slightly above £8 million.