LONDON (ShareCast) - (Sharecast News) - Oil exploration, development and production company Mosman Oil and Gas announced the spud of the Stanley-3 well in Texas on Monday.
The AIM-traded firm said Stanley-3 was the next well to be drilled as part of the strategic alliance with the privately owned Baja Oil & Gas company.

It explained that Stanley-3 was being drilled vertically to a total depth of 5,100 feet.

The primary objective was to reach the multiple Yegua sands, at similar depths to those encountered in Stanley-1 and Stanley-2, with secondary objectives existing at shallower drilling depths above the Yegua reservoirs.

The total cost, for all participants, of drilling Stanley-3 was estimated to be around $0.33m, and if commercially successful, an additional amount of approximately $0.17m would be required for completion and tie-in operations.

Mosman said it would have at least a 14.85% working interest in the well, with the well to be drilled on a turnkey contract basis.

Mosman said its commitments to fund its portion of the well would be from existing cash resources.

"Given the significant results of Stanley-1 and 2, the operator has quickly moved to Stanley-3 with the assistance of Mosman consultants and Baja," said chairman John W Barr.

"It is anticipated the well will be completed in a short period of time and the initial oil production will be seen by mid-September.

"Mosman's clear intention is to increase production and thus cash flows as quickly as possible whilst taking into account operational and legislative requirements."

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