Mosman Oil and Gas Ltd (AIM:MSMN) said it expects to spud the Cinnabar-1 well in Texas within the next two weeks.
Cinnabar is planned for a vertical depth of 9,900 feet with its primary target the Wilcox sands, which produce oil and gas in nearby wells.
The drilling is expected to take about two weeks, it said in a statement on Tuesday.
The oil exploration, development and production company owns approximately 75% of the working interest in the well.
Mosman Operating LLC, a 100%-owned subsidiary of the company, is the operator of the lease.