5th Aug 2019 14:26
(Alliance News) - Mosman Oil & Gas Ltd on Monday reported the spud of the Stanley-3 well in Texas, a well in which the AIM-listed company has a 16.5% holding.
The exploration, development and production company said Stanley-3 is the next well to be drilled as part of the strategic alliance with the privately owned Baja Oil & Gas LLC. Stanley-3 is being drilled vertically to a total depth of 5,100 feet.
Mosman explained that the primary objective is to reach the multiple Yegua sands at similar depths to those encountered in Stanley-1 and Stanley-2. Secondary objectives exist at shallower drilling depths above the Yegua reservoirs.
The total cost of drilling Stanley-3 is estimated to be USD325,000 and, if commercially successful, an additional amount of USD165,000 will be required for completion and tie in operations, Mosman noted.
Mosman's commitments to fund its portion of the well will be from existing cash resources.
"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," said Mosman Chair John Barr.
Mosman shares were trading 0.6% higher on Monday in London at 0.26 pence each.
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