Mosman stops drilling at Vecta helium project in Colorado

Helium and hydrogen exploration, development, and production company Mosman Oil and Gas has terminated its drilling programme at the Vecta helium project in Colorado.

The programme targeted the “helium-rich” Lyons formation across the Billy Goat, BARD, and Garcia areas of the acreage, at depths between 1,200 and 1,500 feet.

However, both BARD and Garcia wells encountered the formation deeper than expected, with water-wet conditions and no structural traps, meaning the geology was less reliable than predicted.

Given the Lyons formation’s low pressure and flow rates, even with helium concentrations of 2% to 3%, extensive drilling was not commercially viable.

Howard McLaughlin, interim CEO of Mosman, said the company exited the programme early with minimal cost. The total cost to Mosman for the drilling campaign was $214,931.

“We now look forward to focusing our efforts on the larger opportunities at our Sagebrush and Coyote Wash helium projects in Colorado, where we see significant potential for growth,” Mclaughlin added.

In January, Mosman signed a deal to acquire an 82.5% working interest in the Sagebrush project in Colorado.

Based on studies, Mosman hopes that helium and additional hydrocarbons will be present on the lease, which is located adjacent to the company’s Coyote Wash project.