Mosman Oil and Gas today announced that the Cinnabar development well in Tyler County, Texas has completed drilling.

The well was drilled to a depth of 9,900 feet. The mud-log confirmed multiple oil-bearing Wilcox sands from 9,050 feet to 9,850 feet. The Wilcox sands are the primary targets which notably have a long production history in nearby wells (mainly oil with some associated gas).  

The next steps are to run wireline logs followed by run and cement production casing, and then proceed to put the well on production. Flow tests are not required as the production capability is already demonstrated at the existing production wells in the lease area.  Based on nearby well history, the anticipated production rate estimates remain at circa 120 boepd (gross) although obviously actual production rates will not be known until hydrocarbons are flowed to surface.

Once casing is run and cemented the drilling rig will be off contract and demobilized, which may take a week. After the drilling rig has left the well site, a service rig will be brought in to run the tubing and packer. The casing will then be perforated, and the well can be produced once a flowline is laid from the Cinnabar well to the existing production facilities. The production zone depth will be advised once it is perforated, and flow rates will be announced in due course.

The Company is pleased with the successful drilling at Cinnabar with mudlogs confirming Mosman's technical work, including 3D seismic reprocessing, indicating considerable potential for additional development wells at Cinnabar. Planning for addition wells will commence immediately. The lease has an area of over 350 acres and the allowable Wilcox well spacing is 40 acres.

Mosman owns a 75% working interest in the Cinnabar well and the Cinnabar lease. Mosman Operating LLC, a 100% owned subsidiary of Mosman, is the Operator of the lease.