EP-145 Update

15 October 2024

Mosman Oil and Gas Limited

("Mosman" or the "Company")

EP-145 Update

Acquisition of 75% interest and Operatorship

Mosman Oil and Gas Limited (AIM: MSMN) the helium, hydrogen and hydrocarbon exploration, development and production company, has reached agreement to acquire Greenvale Energy Ltd's (ASX:GRV) ("Greenvale") 75% interest in EP-145, subject to normal conditions including government approval ("Acquisition").The consideration payable is AU$250,000 (including the acquisition of seismic long lead items acquired by Greenvale worth approximately AU$122,000) and will result in Mosman holding a 100% interest and operational control of EP-145.

EP-145 Prospective Resources

Source: Mosman estimates October 2022 to the SPE PRMS Standard

Mosman focus on helium

In June 2024, Mosman announced a strategic first-move into helium in the USA with a 20% interest in the Vecta Helium Project in Colorado where five drilling locations identified and approvals in place. Mosman also committed to a wider growth strategy through a focus on pursuing helium acquisition and development opportunities in what is seen as a rapidly growing market which is experiencing severe supply shortages and strong demand growth and pricing. The Company has also been actively progressing business development opportunities in the USA that fit its search criteria of proven high helium concentrations and is currently assessing and negotiating a short list of helium acquisition and farm-in opportunities.

Given Mosman's extensive technical knowledge of the Amadeus Basin, it sees increasingly significant value in the EP-145 permit, enhanced as a result of higher helium prices and the recent higher gas prices in the Northern Territory. The value of the permit has been further enhanced with the recently elected pro-business, pro-gas government. Approvals required to acquire seismic have been submitted to the Northern Territory government.

With a stronger balance sheet, Mosman now has the cash resources to meet the current Permit Year Work Program (including seismic acquisition and processing) commitments on EP-145 as well as continuing to grow its existing helium business in the USA that it expects will be further expanded by a number of acquisition opportunities it is currently evaluating.

EP-145

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 grid in 1982 and flowed wet gas to surface at a rate of 3.5MMscf/d from the Pacoota Sandstone, the main producing reservoir in the Mereenie and Palm Valley Fields. A follow up well, Tent Hill-1 (1984), was drilled to the southeast on the same anticline, oil was observed 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.

Background to the Acquisition

In October 2023, Mosman signed a Farmin Agreement whereby Greenvale earnt a 75% interest in EP-145 in exchange for payment of AU$160,000, committing it to fund both the Permit Year Three work program including seismic (estimated to be approximately AU$2m) and the Permit Year Four work program, including drilling one well with a cost cap of AU$5.5m.

More recently, Greenvale announced a refocussing of its strategy to uranium exploration. Mosman has seized the opportunity to acquire its 75% to move to 100% interest.

Prior to the Acquisition, Mosman's interest in EP-145 had a carrying value in Mosman's consolidated accounts of AU$1.49 million (100%) as at 31 December 2023. Based on the carrying value at 31 December 2023, the value of the assets being acquired are approximately AU$1.12m. Exploration costs to date have been capitalised and there are no historic profits or losses attributable to EP-145.

Andy Carroll, Chief Executive Officer of Mosman, said: "We are pleased to have 100% ownership and operational control of EP-145, a project that the Mosman's technical team knows extremely well and has been involved with over a number of years. The permit is now ever more commercially compelling with increased value of proven hydrocarbons that would be co-produced along with the high value helium.

"Recent seismic acquired nearby has confirmed the ability of seismic to define the exploration targets on the Central Ridge (which includes the Mereenie oil and gas field) that extends in to EP-145.

"The gas shortfall currently evident in the Northern Territory and in the major markets of the East Coast, coupled with the increasing spare production capacity in nearby gas plants at Mereenie and Palm Valley, offers development opportunities for future gas projects in the Amadeus Basin like EP-145. Readily available infrastructure includes gas processing facilities, gas pipelines to Darwin, where there is a helium plant, and major gas transmission systems to markets in Eastern Australia.

"Mosman has a clear business strategy to expand and deliver on a portfolio of helium exploration projects in Australia and USA which are experiencing strong demand growth and escalating pricing."

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this information is now considered to be in the public domain.

Enquiries:

Updates on the Company's activities are regularly posted on its website: www.mosmanoilandgas.com

Notes to editors

Mosman (AIM: MSMN) is a helium, hydrogen and hydrocarbon exploration, development, and production company with projects in the US and Australia. Mosman's strategic objectives remain consistent: to identify opportunities which will provide operating cash flow and have development upside, in conjunction with progressing exploration. The Company has several projects in the US, in addition to exploration projects in the Amadeus Basin in Central Australia.