Mosman Oil and Gas Ltd (AIM:MSMN) recently announced that it has increased its interest in the Vecta helium project in the USA, as previously mentioned. The company is actively seeking additional opportunities to enhance its helium exploration portfolio. In an update on its capital structure and helium project, the AIM-listed company disclosed that it issued shares from warrant exercises, generating an additional capital inflow of £475,000.
Moreover, Mosman issued 650 million shares to Vecta Oil & Gas Ltd as part of a deal to boost its ownership stake in the partner company, resulting in Vecta holding a 4.3% shareholding. The company’s chief executive, Andy Carroll, highlighted the positive impact of cash inflows from warrant exercises on the balance sheet. He also expressed satisfaction with the strong demand for new Mosman shares, with 2,900,000,000 shares issued in the last quarter, all of which were quickly absorbed by the market as the share price tripled.
Carroll emphasized the key criteria for global helium projects, including high helium content, low drilling costs, and proximity to helium infrastructure. The Vecta project in Colorado, USA, met these criteria, leading to Mosman’s decision to increase its interest from 10% to 20%. Additionally, the willingness of Vecta to accept Mosman shares instead of cash further aligned the interests of both parties and ensured that exploration costs would be covered by existing cash reserves.
In another development, Mosman highlighted the successful fundraising efforts of its joint venture partner at the EP(A) 155 license in Australia, Georgina Energy PLC (LSE:GEX). Georgina Energy raised £5 million and identified significant prospective resources of helium, hydrogen, and hydrocarbons in its prospectus.
The company’s strategic moves to strengthen its position in the helium exploration sector and align interests with key partners have garnered positive attention from investors. The increased demand for Mosman shares reflects confidence in the company’s growth prospects and strategic vision. As Mosman continues to evaluate new opportunities and enhance its portfolio, investors remain optimistic about the potential for future growth and value creation in the helium market.
