Mosman Oil and Gas Limited (LON:MSMN) told investors that the fully funded Falcon-1 well, in Texas, will be spudded shortly.
The company, in a statement, said the drill rig for the programme has been selected and the operator has issued its cash-call to partners. Presently the rig is being prepared for mobilisation to the site.
“We are pleased that the considerable work completed means drilling activity at the fully funded Falcon-1 well will commence shortly,” said John Barr, Mosman chairman.
“Falcon-1 is just one part of the current activities with workovers, which will shortly be followed by a second funded well at Stanley. Each of these activities has a clear objective to build the production base.”
Mosman noted that it has reduced its exposure to project costs by farming out a 10% interest in the project to an unrelated third party – which will pay 13.34% of all costs to earn the stake.
In London, Mosman shares rose by 11.4% to change hands at 0.17p each.