Mosman succesfully completes drilling of first well with Texan firm Baja

Mosman Oil & Gas on Wednesday successfully completed drilling operations at the first well of the Stanley Development Drilling Project in Texas.

The oil exploration, development and production company said that data indicated the well has multiple pay zones and encountered a section of around 19 feet total thickness, with average porosity of around 18%.

After drilling to a depth of 7,000 feet, the next phase is to install production facilities which will take between 30 and 60 days.

Following this, the well will be completed as a producer and commence production, with pre-drill operator forecasted initial flow rates seen as approximately 150 barrels of oil per day.

"We are pleased Stanley will be completed and add to Mosman's existing production. We are also encouraged with this successful validation of the investment decision and the Strategic Alliance with Baja," said Mosman chairman John Barr.

The Stanley 1 well is the first that Mosman has drilled with Texas-based Baja Oil & Gas, which owns a substantial existing inventory of oil and gas development projects.

The strategic alliance allows Mosman to participate in the evaluation of future projects with Baja and be able to invest in the development of its existing projects.

"Mosman continues to pursue its strategic objective to identify opportunities which will provide operating cash flow and have development upside, in conjunction with exploration of existing exploration permits," said Barr.

Mosman Oil & Gas’ shares were up 5.19% at 0.71p at 1158 BST.