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Mosman Oil and Gas has announced a maiden estimate of helium and hydrocarbon resources at the Sagebrush Project in Colorado, US, indicating substantial volumes of both gases.
The estimate is based on a report from Four Corners Helium dated 5 May 2025, which suggests significant potential for fast-track development.
The Sagebrush Project's estimated contingent resources include 205 million cubic feet (mcf) of helium and 1.7 billion cubic feet (bcf) of hydrocarbon gases.
This estimation follows seismic interpretations that point to a structural closure of around 585 acres, with an initial gas in place volume of 18.4bcf and a recoverable gas volume of 11bcf.
The presence of existing wells, flow-tested helium and hydrocarbons, oil production infrastructure and an existing gas pipeline at the Sagebrush Project form a solid foundation for potential fast-track development of these resources.
This opportunity is further enhanced by the significant exploration prospects identified by seismic studies at both the Sagebrush Project and the adjacent Coyote Wash Project.
Mosman CEO Andy Carroll said: “This Maiden Contingent Resource estimates for helium and hydrocarbon gases is a significant milestone, indicating the existing well could be used to fast-track helium production in stages.
“We have all the key ingredients for assessing future development potential with an existing well, gas composition, production facilities and a gas pipeline.
“We are now working on a development feasibility study that will likely include recompletion of the well and an extended flow test, as well as design of production facilities for selling helium via road tanker or pipeline and using the hydrocarbons for power generation and/or sale.”
The Four Corners region in Colorado, where the Sagebrush Project is located, is known for its established helium production.
The Leadville formation carbonates have been a source of helium in fields such as Doe Creek, located 50 miles north (80.5km) of the Sagebrush Project.
Currently, the Sagebrush Project produces approximately 40 barrels of oil per day (bopd) from seven wells. This production enables the 10,000 leased acres to be held by production.
Mosman has access to existing well data, oil production records and seismic data.
Additionally, test data from the Sagebrush-1 well, drilled in 1993 by a previous operator, showed a drill stem flow test (DST) in the Leadville formation that flowed gas with 2.76% helium, among other gases.
Adding to the plans to acquire 3D seismic results, extended flow testing of the Leadville formation at the Sagebrush-1 well is expected to be undertaken in the near future, which may include flow-testing the Lower Leadville formation.