Mosman Oil and Gas Ltd (AIM:MSMN) has increased its footprint in Texas, picking up a new lease adjacent to its Cinnabar project.
It comes after analysis of the project, including the interpretation of 3D seismic data, which identified the potential for the Cinnabar field to extend beyond the existing 350-acre Cinnabar lease.
Subsequently, the firm applied for an additional 120 acres that have now been granted.
“Mosman's technical work has identified a preferred drilling location within the new lease,” Mosman said in a statement.
“The drilling of a well on this lease is now the focus of attention for Mosman and the joint venture parties. Further details of timing, location and costings will be announced in due course.”
Mosman noted that the cost of the lease was US$36,000 plus a 25% royalty on gross production, which the company described as normal for this part of Texas. The lease will have an 18-month initial term.