The acquisitions are expected to help Mosman Oil and Gas expand the success of the Stanley project in Texas
Mosman Oil and Gas, and Australian oil and gas company, has agreed to acquire interests in two leases in Texas, US located near its Stanley project.
The Australian firm said that it has worked alongside its partner Baja Oil and Gas to identify additional locations where the 3D Seismic-led approach adopted at Stanley can be repeated. The new development project has been named as Greater Stanley by the company.
Through the first transaction, Mosman Oil and Gas will acquire a 20% stake of an existing oil producing lease called Greater Stanley 1, which spans 36 acres. The company has taken part in the drilling of three wells in the acreage.
Currently, the Greater Stanley 1 lease is producing about six barrels of oil per day (bopd) from two wells completed in the Sparta zone.
The second deal involves a nearby lease of about 35 acres, named as Greater Stanley 2, which is yet to see any drilling of wells. According to Mosman Oil and Gas, the area is being directly leased from landowners.
The Australian oil and gas company expects to acquire at least a 25% stake in the lease.
Baja Oil and Gas will also acquire an interest in the two acreages and will become their operator.
Further plans of Mosman Oil and Gas
Mosman Oil and Gas’ next step for the Greater Stanley area will be to undertake detailed technical work to determine the way forward, which could include drilling of a well later this year.
The two acquisitions will be subject to final documentation and meeting of the associated precedent conditions.
Mosman Oil and Gas chairman John Barr said: “Mosman is pleased to provide tangible evidence of the benefit of its investment in business development work with Baja to increase Mosman’s interests in Texas. The Greater Stanley area will enable additional activity aimed at increasing production.”