Mosman Oil and Gas Ltd (AIM:MSMN) told investors that the Cinnabar-1 well has now flowed oil and gas and that the well is currently being completed and placed on production.
The company, in a statement, said the Cinnabar well has been completed and perforated in the upper Wilcox zone - encountered between 9,050 to 9,110 feet - and it initially flowed both oil and gas.
Presently the well has been producing into temporary tankage which is volume-constrained, Mosman said, and it intends that the next step will be to connect the well to the existing production facility with larger tanks and gas separation.
Mosman said that it will announce the stable production rates once they have been established and measured.
"The success at Cinnabar-1 confirms Mosman's technical work, indicating considerable potential for additional development wells on the Cinnabar lease,” said Mosman chair John Barr in the statement.
"This success again reinforces the investment case in South-Eastern Texas where Mosman has participated in several wells, and each one has been placed on production," he added.
Mosman holds a 75% working interest in the Cinnabar well and it is the operator of the lease.