Mosman Oil and Gas Ltd (LON:MSMN) told investors it has now spudded the Falcon-1 well at the 50% owned Champion project in East Texas.
The well is being drilled directionally to penetrate two prospective target zones in the Frio sandstone, a prolific production zone in the area. The targets, Hartburg and Nodosaria, are located between 7,400-7,500 feet.
READ: Mosman confirms successful Stanley-4 well
"Falcon-1 well is the first well that Mosman has participated in at the Champion Project,” John Barr, Mosman chairman said in a statement.
“Success at Falcon would be a major step forward for Mosman to build production and provide information for further drilling and development of the Champion area."
Barr continued: "In addition, Mosman is seeking opportunities to expand its leasehold footprint in the East Texas area. Most recently an interest in the Greater Stanley Project was acquired, and other acquisitions are being reviewed to determine potential investment."
Mosman also noted that, at the 16.5% owned Stanley project, a service rig that arrived to site last week completed its planned workover of the Stanley-1 well and the well resumed oil production. The service rig will move on to the Stanley-4 well to bring it into production.
Flow rates for both wells will be published when advised by the operator.
“Operations at Falcon and Stanley-4 continue to progress, and shareholders will see these as an important valuation catalysts in our view given the potential to be high-margin producers with untapped upside potential,” SP Angel analyst Sam Wahab said in a note.