Mosman Oil and Gas, the hydrocarbon, helium and hydrogen exploration, development and production company, notes the update from Greenvale Energy, its farmin partner and Operator of the EP 145 project in the Amadeus Basin in Central Australia.

Greenvale updated that: 'approvals are progressing and on track for seismic acquisition to commence in August, allowing it to advance its high-potential helium project in central Australia'.

Highlights

• EP 145 2D Seismic Environmental Management Plan submitted to DEPWS (Department of Environment, Parks and Water Security).
• All remaining long-lead items ordered for the seismic program. 
• Seismic data acquisition expected to commence in August, providing a key dataset for Greenvale to target ultra-high-grade helium, hydrogen and hydrocarbon resources within the highly prospective Amadeus Basin. 
• EP145 represents an exciting opportunity for Greenvale to become a supplier to the rapidly growing helium market, which is experiencing severe supply shortages and strong demand growth and pricing. 
• EP145 contains a reported Prospective Resource Estimate of 440 Billion cubic feet (Bcf) of Total Gas including 26.4Bcf of Helium and 26.4Bcf of Hydrogen. 

Greenvale's CEO, Mark Turner, commented: 
"We are pleased that the permitting and approvals process for this 2D seismic program for EP145 is progressing smoothly, with the start of this survey representing a key milestone to allow us to finalise drilling locations to test the significant potential of this exciting asset.

"Ongoing work programs by Greenvale and other operators in the Amadeus Basin will help us to fully evaluate the significant helium and hydrogen potential of this region and advance this exciting project for the benefit of our shareholders."

Mosman retains 25% of EP145 with 75% farmed out to Greenvale.

Andy Carroll, CEO of Mosman commented: 
"It is encouraging to see Greenvale has progressed the permitting and approvals process for this 2D seismic program for EP 145. Seismic is a step before drilling to test the significant potential of this exciting helium and hydrogen asset and we look forward to providing updates as Greenvale progresses."

EP145 

The permit contains a significant anticline (named West Walker), over 30km in length, which hosts Ordovician through to Neoproterozoic stratigraphy with prospective targets at multiple levels of over 30km in length. The significance of the geology is its proximity to the nearby Mereenie oil and gas field, which produce from the Ordovician Pacoota Sandstone unit.

Two wells have been drilled on the anticline, the first West Walker -1 tested the western end of the feature. The well was drilled on a sparse seismic rid in 1982 and flowed wet gas to surface at a ratqe of 3.5MMscf/d from the Pacoota Sandstone, the main producing reservoir in the Mereenie and Palm Valley Fields. A follow up well drilled, Tent Hill-1 (1984), was drilled to the southe4ast on the same anticline, oil was obsereved seeping from cores but the well was not tested. Reprocessing of the vintage seismic data shows that both wells were drilled off structure, West Walker-1 drilled downdip of the main closure and Tent Hill-1 did not penetrate the target sandstone within closure.

As part of Mosman's initial technical evaluation SRK Consulting (Australia) were contracted to produce an independent report ("SRK Report, 2015") into the prospective resources contained in permit EP145. The report highlights the potential for both conventional oil and gas resources in proven reservoirs within the West Walker Anticline and unconventional gas resources in the Horn Valley Siltstone. More recent technical work by Mosman and Geognostics, Australia has highlighted the potential for helium and hydrogen in addition to the hydrocarbon resources documented by SRK. The exploration program has been revised to focus on the potential of EP145 to contain resources of hydrocarbons, helium and hydrogen and multiple levels within the stratigraphy as demonstrated elsewhere in the basin.

KeyFacts Energy: Mosman Australia country profile