Mosman Oil & Gas Ltd (LON:MSMN) said it expected initial oil in mid-September as a third well was spudded at the Stanley project in east Texas.
The primary objective of Stanley-3, where Mosman has at least a 14.85% working interest in the well as part of an alliance with privately-owned Baja Oil & Gas, is to reach the multiple Yegua sands that have seen oil flowing at 244 barrels per day at Stanley-1 and 130-135 barrels of oil equivalent per day at Stanley-2.
With the well being drilled vertically to a total depth of 5,100 feet on a turnkey contract basis, the total cost for all participants of drilling Stanley-3 is estimated to be around US$325,000.
If commercially successful, an additional amount of approximately US$165,000 will be required for completion and tie-in operations.
“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 chairman John W Barr.
“Mosman's clear intention is to increase production and thus cashflows as quickly as possible whilst taking into account operational and legislative requirements.”