Mosman Oil and Gas announced it had commenced drilling at Stanley-2 in Texas, causing shares to bounce during Tuesday trading.
The oil exploration and development company said the drilling at the site would take approximately 14 days to complete.
The company added that the primary targets of the drilling are Eocene aged sands. which were identified as ‘potentially oil bearing’ in Stanley-1.
As a result, Stanley-2 will be directionally drilled to optimise any potential production of the reservoir objective sands.
John W Barr, Chairman, commented on the announcement: “It is good to have drilling underway after the weather-related delays. The drilling should happen quickly and the Board of Mosman very much look forward to the detailed results and to updating shareholders as soon as possible.”
Mosman Oil and Gas is listed on the London Stock Exchange on the junior AIM market. Its projects are located in the US and Australia.
Its assets include the Welch Permian Basin, the Baja Stategic Alliance in the US as well as the Amadeus Basin in Australia.
Shares in the firm (LON:MSMN) are currently -2.97% as of 14:22 as investors react to the news.
Elsewhere across the markets, Bonmarché shares (LON:BON) plunged on Tuesday after the retailer issued its third profit warning in 6 months.
Meanwhile, Office Outlet, formerly known under the Staples chain brand, entered administration, placing as many as 1,200 jobs at risk.