How it’s doing
In July, Mosman raised £400,000 through a placing at 0.08p a share to help fund the drilling of the Falcon well at the Champion project in Texas.
The junior has a farm-in agreement with Baja Oil and Gas where it has a 60% working interest but will pay 80% of the first well at Champion. This well has an estimated total cost of US$700,000 to drill and complete.
Baja has a 30% interest and will pay 10% of the well cost while Contour Exploration and Production, owned by Howard McLaughlin, Mosman’s US Manager, has 10% of the lease and will pay 10% of the well cost.
In addition to Falcon, Mosman said that several other prospects in the project area have been mapped by Baja using 3D seismic, including Galaxie, Durango, Corona East and Corona West.
What the boss says: John Barr, chairman
“We expect to shortly complete planning, start preparation of the Falcon wellsite in July, spud the well in August, and announce results a few weeks later.
“In addition to Falcon activity, the workover of the Stanley-1 well is now underway and should be completed next week.
“The workover at Greater Stanley awaits approvals by the relevant authorities.”
“Significantly, the Stanley Operator has today indicated that the drilling of Stanley-4 is now planned for August 2020.
“An AFE for that drill (where the site works have already been completed) is expected shortly. With reduced drilling activity, more rigs are available, and this is expected to result in lower drilling costs.
“This placing, along with the recent Blackstone settlement will result in Mosman having cash of over A$1mln. The pending sale of the Welch Oil Field announced on 20 May 2020 and due to complete shortly, could increase this to A$1.4mln.”
- Drilling gets underway at Champion project
- Further wells coming on stream at Stanley
- Sale of Arkoma and Welch
Read More: Mosman Oil and Gas Limited readies for drilling at Champion