Mosman Oil and Gas ups stake in Cinnabar lease in Texas StockMarketWire.com - Oil company Mosman Oil and Gas said it had agreed to acquire an additional 80.8% working interest in the Cinnabar lease in East Texas for $62,500.
The acquisition would up Mosman's interest in the asset to 97%.
The 348.83 acre lease formed part of the Challenger project in which Mosman had a 16.2% working interest.
It Cinnabar had four development drilling locations, identified using nearby wells and 3D seismic methods.
There were two wells drilled in the lease that had produced significant quantities of oil but were now shut-in.
Mosman, which would become operator of the lease, said it would review operations and the possible workover of one or both of the wells to increase production.
'With the highly encouraging drilling results at the Falcon-1 well on the Champion project, our move to higher equity in larger prospects accelerates our growth,' chairman John W Barr said.
At 8:46am: [ LON:MSMN] Mosman Oil And Gas Ltd share price was -0p at 0.14p