27th Feb 2020 14:38
(Alliance News) - Mosman Oil & Gas PLC said Thursday it has agreed to acquire two leases in the US state of Texas as part of its Stanley project for USD30,000.
Shares in Mosman Oil & Gas were 14% lower at 0.12 pence on Thursday in London.
The first acquisition of additional acreage is 20% of an existing oil producing lease known as Greater Stanley 1, covering 36 acres adjacent to the Stanley project, where Mosman has participated in three wells.
The Greater Stanley 1 lease is producing around six barrels of oil per day from two wells completed in the Sparta zone. Acquiring this lease brings the potential to apply the technical work from the Stanley wells on the lease, which could increase its output.
The second acquisition is a 35 acre lease with no wells, known as Greater Stanley 2. As Mosman's partner, Baja Oil & Gas LLC is managing the acquisition process, Mosman expects to acquire a 25% working interest in the lease.
Looking ahead, Mosman will look to carry out detailed technical work to determine the way forward, which could include drilling a well later in 2020.
In addition, the Stanley-4 well is expected to be drilled in March.
"Mosman is pleased to provide tangible evidence of the benefit of its investment in business development work with Baja to increase Mosman's interests in Texas. The Greater Stanley area will enable additional activity aimed at increasing production," said Chair John Barr.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Mosman Oil & Gas