LONDON, UK: Oil exploration and production company Mosman Oil and Gas Limited (AIM: MSMN) has announced the acquisition of a new lease in Texas, USA adjacent to the Cinnabar lease.

Mosman will operate the lease and have a 78% working interest. The company undertook a detailed review, including the acquisition and interpretation of 3D seismic data when it acquired the Cinnabar lease.

This work identified the potential for the field to extend beyond the circa 350 acre Cinnabar lease. As a result, Mosman applied to BPX Energy to lease 120 acres of available acreage adjacent to the Cinnabar lease, and the lease has been agreed upon.

The principal terms of the lease include payment of USD 36,000, an initial term of eighteen months that may be extended by the drilling and production of a well, and a royalty of 25% of gross production.

Mosman Oil and Gas has identified a preferred drilling location within the new lease and the drilling of a well is now the focus of attention for Mosman and the Joint Venture parties. Further details of timing, location and costings will be announced in due course, and funding of the well will be considered as part of the current Corporate Review that is underway.

Mosman announces initial production from the Winters-2 well in East Texas