Currently, drilling is being conducted along the Frio Sands formation. According to the operator, an initial depth of 743ft has been drilled at Well No. 2, which is expected to be drilled to a total depth of 6,800ft.

Signature Exploration holds a 15% working interest in the Koliba Prospect, a 173-acre lease located in the North McFadden Field near the town of Bloomington. The prospect is valued to contain $5.8m in estimated oil and gas reserves based on current prices.

Steven Weldon, chairman and CEO of Signature Exploration and Production, said: “Commencing drilling operations at Koliba Well No. 2 represents a new corporate milestone that is the result of the hard work and determination of our operator and management team over the past six months.

“We now can look forward to capitalizing on this low-risk/high reward prospect due to its proximity to previous wells in the region.”