Oil exploration and production company Mosman Oil and Gas Limited (AIM: MSMN) today announced the spud of the Stanley-3 well in Texas.
The spud is the next step before the Company drills Stanley-3 as part of its Strategic Alliance with privately owned Baja Oil and Gas.
The well will be drilled to 5,100 feet, with the goal of reaching the Yegua sands at a similar depth to that encountered at Stanley-1 and Stanley-2. The total cost will be US $325,000, and an additional $165,000 for completion and tie operations should the well prove commercially viable.
Mosman Oil and Gas will have a minimum 14.85% interest in the well operation, with the project being funded out of the Company’s existing cash facilities.
Mosman Oil and Gas comments
John W Barr, Chairman, said,
“Given the significant results of Stanley-1 and 2, the operator has quickly moved to Stanley-3 with the assistance of Mosman consultants and Baja. It is anticipated the well will be completed in a short period of time and the Initial Oil production will be seen by mid September.”
“Mosman’s clear intention is to increase production and thus cashflows as quickly as possible whilst taking into account operational and legislative requirements.”
The Company’s shares have rallied modestly by 0.58% or 0.0015p to 0.26p 05/08/19 12:38 BST. Neither a p/e ratio nor a dividend yield are available, the Group’s market cap is £2.30 million.
Elsewhere in the oil and gas sector, there have been updates from; Nostrum Oil and Gas PLC (LON: NOG), Reabold Resources PLC (LON: RBD), Trinity Exploration and Production PLC (LON: TRIN) and Union Jack Oil PLC (LON: UJO).