Mosman Raises Stake in the Winters Lease in East Texas
LSE-listed Mosman Oil & Gas Ltd. has entered into an agreement with an undisclosed seller to acquire an additional 6% working interest in the Winters lease located in East Texas. As a result of the transaction, Mosman will hold an increased 29.3% operated interest in the Winters lease (before royalties).
Under the terms of the deal, Mosman will acquire the interest in exchange for payment of USD12,000 towards past costs. In addition, Mosman shall also pay 8% of the costs of drilling of the Winters-2 development well.
In June, Mosman had entered into an agreement to acquire privately-held Nadsoilco LLC. As part of that transaction, Mosman acquired a 23.3% interest in the Winters lease, a 20% working interest in the Stanley lease, and a 20% working interest in the Livingston lease in Texas. Upon completion of the Nadsoilco transaction on July 9th, Mosman took over the operatorship of the operations associated with the leases and wells.
The Winters lease covers an area of approximately 48 gross (11.18 net) acres located in Polk County, Texas, situated adjacent to the Greater Stanley project. The lease contains the producing Winters-1 well, which produced ~969 barrels of oil in the last 12 months. Through Nadsoilco, Mosman is now preparing to drill the Winters-2 well as a development well targeting the Wilcox formation, in the same zone that is producing in adjacent wells. Winters-2 will be drilled as soon as site preparation has been completed, and the drilling rig is available, with an estimated budget of approximately US$600,000.
Headquartered in Sydney, Mosman is engaged in oil & gas projects in the United States and Australia, and also owns a minority stake in the TSX-V listed Norseman Silver Inc.