Mosman Oil and Gas Ltd (AIM:MSMN) told investors it's planned well drilling on the Cinnabar project area, in East Texas, is on track to kick off by early September.
The company, in a statement, said the necessary casing has been purchased and a rig contract has been signed.
Ahead of the programme, the company has executed a new farm-out deal with Contour Exploration and Production LLC which is earning a 10% interest in the lease. In return, it will fund 13.3% of Mosman’s share of the well cost (which is estimated at around US$1mln).
Mosman will retain 75% of the project and has a lower funding requirement for the well.
The company this morning confirmed that it had some A$2.4mln of cash at the end of June.